Podcast
Questions and Answers
What is the purpose of comparing the percentage of the total fee allocated to project consultants to industry guidelines?
What is the purpose of comparing the percentage of the total fee allocated to project consultants to industry guidelines?
- To ensure the project consultants are compensated fairly and reasonably. (correct)
- To evaluate the profitability of the firm.
- To determine if the project consultants are charging too much.
- To calculate the total project expenses accurately.
Why should project-related, non-reimbursable expenses be identified during the fee-setting process?
Why should project-related, non-reimbursable expenses be identified during the fee-setting process?
- To include them in the reimbursable expenses.
- To reduce the total project expenses.
- To establish a more accurate net operating revenue and net profit. (correct)
- To increase the project's profitability.
How does identifying unit costs for non-reimbursable expenses contribute to managing project workload?
How does identifying unit costs for non-reimbursable expenses contribute to managing project workload?
- By ensuring accurate calculation of net operating revenue.
- By increasing the direct hours utilization in projects. (correct)
- By adjusting the project schedule based on expenses.
- By reducing the overtime hours spent on projects.
What is the potential negative impact of charging hours in excess of those budgeted or allocated to project-related activities?
What is the potential negative impact of charging hours in excess of those budgeted or allocated to project-related activities?
How are overtime hours, which are charged to project-related activities but have no cost related to them, recorded?
How are overtime hours, which are charged to project-related activities but have no cost related to them, recorded?
What might be a reason for a business decision to spend hours to 'catch up' with the project schedule?
What might be a reason for a business decision to spend hours to 'catch up' with the project schedule?
What is a recommended step for firms to take before the start of the coming year?
What is a recommended step for firms to take before the start of the coming year?
Which aspect of financial performance is used to develop a competitive hourly billing rate for each member of the firm?
Which aspect of financial performance is used to develop a competitive hourly billing rate for each member of the firm?
What is important for firms to track in order to be as efficient and effective as possible?
What is important for firms to track in order to be as efficient and effective as possible?
Which factor plays a role in determining the break-even rates for a firm?
Which factor plays a role in determining the break-even rates for a firm?
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