# Finance-AW20

## Finance-AW20 Online Services

Lesson Four

1. What is the difference between costing and price?
2. Identify the three AACE categories of estimates and the ranges of accuracy
expected.

3. What are conceptual estimates used for?
4. An owner is thinking about building a 35,000 seat stadium. He has data from another stadium being built that shows that it is costing about \$11.8 million for a similar stadium that will seat 42,000 people. Estimate the cost
for the owner.

5. A process plant is going to be built that will have a capacity of 28,000 barrels per day. An identical process plant is being built for \$28 million dollars with a capacity of 20,000 barrels. If the scale of operations constant( cost capacity factor) is .6 for this process, what would you estimate the cost to be?
6. A solid process plant is going to be built. From early estimates, the equipment is expected to cost about \$I 3 million. Estimate the cost of the overall plant.

7. Complete the sample problems at the end of Appendix C without looking the answers ( this is an ethics quiz also).
8. Describe the advantages of using the parametric estimating approach over the
factored method.

9. List and explain the steps in preparing a parametric estimate.

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Lesson Five

1. What is the difference between an allowance and contingency?
2. Describe how time affects an estimate.

3. What is an alternate?
4. What does a contractor include in their Mark-up?

5. Define direct cost and give three examples of items that are direct costs.
6. Define indirect cost and give three examples of indirect costs.

7. What are the components of the labor costs. Illustrate the development of
labor costs for a construction crew with an example.
three examples of each.

9. What type of documentation should there be with each estimate?
10. Develop a complete estimate for the problem attached. List and explain any