# Advanced Cost and Managerial Accounting

MAF 700 Advanced Cost and Managerial Accounting Case 4 Cost Estimation Due Date May 21st, 2014 Sultan Ltd is a Construction Company specialized in roads and bridges’ construction. The
Company has accumulated data over the years for the projects that it had completed. Mr. Jalal, the general manager, has been reviewing the company’s annual report about the bidding success
rate. He was wondering about the possibility of using available data to improve the bidding process and its outcome. One member of the board suggested looking at the relationship between
engineer’s estimate of the number of work days to complete a project and its estimated cost. Another member suggested the use of correlation between estimated project cost and the
awarded value of the contract. A third member suggested the use of regression analysis where all possible variables related to the estimation of a project costs could to be considered. The
general manager called upon Mrs. Sara, the cost accountant, and assigned her the task of collecting all relevant available data and making the suggested analyses to estimate project costs. She
collected thirty five observations as on the next pages about the following items: – Number of estimated work days to complete a project – Estimate construction costs – Awarded contract
values (contract prices) – Number of bidders – Ratio of successful bids Mrs. Sara also prepared the following simple and multiple regression equations. Y = a + ß1 X1 + e Y = a + ß1 X1 + ß2 X2 + ß3
X3 + ß4 X4 + e Y = Estimated construction costs X1 = Number of work days Contract cost X2 = Awarded contract values X3 = Number of bidders. X4 = Ratio of successful bids. Required: (using a
statistical package such as SPSS) 1. Prepare a correlation matrix among the above variables. What does the matrix tell you? 2. Prepare a table that shows the results of the simple regression and
another that shows the results of the multiple regression analysis. What do these results tell you? 3. Which analysis is more suitable for the general manager’s purpose? Explain why.
1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
Estimated cost (000) 85,000 70,000 110,000 90,000 130,000 160,000 160,000 280,000 130,000 320,000 310,000 305,000 180,000 170,000 160,000 110,000 150,000 180,000 175,000 180,000 200,000
110,000 150,000 180,000 170,000 190,000 220,000 110,000 345,000 305,000 190,000 200,000 105,000 185,000 195,000
Work days 250 300 210 65 100 110 120 200 105 340 345 340 140 150 290 110 120 130 140 160 200 110 115 120 170 260 200 110 310 315 210 130 110 100 155
Contract value (000) 100,000 120,000 150,000 80,000 180,000 190,000 200,000 350,000 180,000 380,000 360,000 370,000 200,000 250,000 300,000 160,000 210,000 230,000 250,000 270,000 260,000
180,000 220,000 230,000 250,000 260,000 270,000 180,000 450,000 340,000 250,000 290,000 160,000 215,000 235,000
No of bidders 5 6 7 8 4 5 6 7 8 10 11 10 10 9 7 8 6 15 12 11 13 15 16 14 16 14 11 8 9 10 11 12 13 12 10
Ratio of success 40 50 60 50 70 70 80 60 40 50 30 60 50 30 40 30 30 40 50 30 20 20 25 60 50 40 70 30 20 40 30 50 30 40
2
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT ?
MAF 700 Advanced Cost and Managerial Accounting Case 4 Cost Estimation Due Date May 21st, 2014 Sultan Ltd is a Construction Company specialized in roads and bridges’ construction. The
Company has accumulated data over the years for the projects that it had completed. Mr. Jalal, the general manager, has been reviewing the company’s annual report about the bidding success
rate. He was wondering about the possibility of using available data to improve the bidding process and its outcome. One member of the board suggested looking at the relationship between
engineer’s estimate of the number of work days to complete a project and its estimated cost. Another member suggested the use of correlation between estimated project cost and the
awarded value of the contract. A third member suggested the use of regression analysis where all possible variables related to the estimation of a project costs could to be considered. The
general manager called upon Mrs. Sara, the cost accountant, and assigned her the task of collecting all relevant available data and making the suggested analyses to estimate project costs. She
collected thirty five observations as on the next pages about the following items: – Number of estimated work days to complete a project – Estimate construction costs – Awarded contract
values (contract prices) – Number of bidders – Ratio of successful bids Mrs. Sara also prepared the following simple and multiple regression equations. Y = a + ß1 X1 + e Y = a + ß1 X1 + ß2 X2 + ß3
X3 + ß4 X4 + e Y = Estimated construction costs X1 = Number of work days Contract cost X2 = Awarded contract values X3 = Number of bidders. X4 = Ratio of successful bids. Required: (using a
statistical package such as SPSS) 1. Prepare a correlation matrix among the above variables. What does the matrix tell you? 2. Prepare a table that shows the results of the simple regression and
another that shows the results of the multiple regression analysis. What do these results tell you? 3. Which analysis is more suitable for the general manager’s purpose? Explain why.
1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
Estimated cost (000) 85,000 70,000 110,000 90,000 130,000 160,000 160,000 280,000 130,000 320,000 310,000 305,000 180,000 170,000 160,000 110,000 150,000 180,000 175,000 180,000 200,000
110,000 150,000 180,000 170,000 190,000 220,000 110,000 345,000 305,000 190,000 200,000 105,000 185,000 195,000
Work days 250 300 210 65 100 110 120 200 105 340 345 340 140 150 290 110 120 130 140 160 200 110 115 120 170 260 200 110 310 315 210 130 110 100 155
Contract value (000) 100,000 120,000 150,000 80,000 180,000 190,000 200,000 350,000 180,000 380,000 360,000 370,000 200,000 250,000 300,000 160,000 210,000 230,000 250,000 270,000 260,000
180,000 220,000 230,000 250,000 260,000 270,000 180,000 450,000 340,000 250,000 290,000 160,000 215,000 235,000
No of bidders 5 6 7 8 4 5 6 7 8 10 11 10 10 9 7 8 6 15 12 11 13 15 16 14 16 14 11 8 9 10 11 12 13 12 10
Ratio of success 40 50 60 50 70 70 80 60 40 50 30 60 50 30 40 30 30 40 50 30 20 20 25 60 50 40 70 30 20 40 30 50 30 40
2
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT ?

# Our Service Charter

1. ### Excellent Quality / 100% Plagiarism-Free

We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
2. ### Free Revisions

We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
3. ### Confidentiality / 100% No Disclosure

We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
4. ### Money Back Guarantee

If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.

We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.

Excellent Quality
Zero Plagiarism
Expert Writers

or