CEE 4303 Lecture Notes - Lecture 1: Cost Accounting, Cash Flow, Management System
25 Mar 2016
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Document Summary
Lecture 1 - chapter 1 - construction financial management. Lines of credit constantly borrowed to the limits. Financial management is the use of a company"s financial resources. Project oriented: greater variety of projects (products, harder to determine the cost of projects. Cannot stockpile completed work for future use. Greater need for detailed job cost accounting. Making sure costs are accurately tracked through the accounting system. Ensuring that the construction accounting system is functioning properly. Projecting the costs at completion for the individual projects, including unbilled committed costs. Determining whether the individual projects are over- or underbilled. Making sure that the needed financial statements have been prepared. Reviewing the financial statements: inline with the rest of the industry, identify potential financial problems before they become a crisis. Setting the minimum profit margin for use in bidding. Analyzing the profitability of different parts of the company and making the necessary changes to improve profitability.
