As the case emphasizes, in the situation of a fixed-price contract, the contractor must take into account all possible changes that may occur during the performance of his activity. Thus, there is a possibility for the costs to increase with a larger amount than he had envisioned (therefore, he will record losses) or the expenditure may be lower than the predicted figures (thus, he will gain on this account). Moreover, in addition to that uncertainty, due to the fact that it had never performed similar activities, the company has no historical costs which could be used as references. The non-existence of a clear basis for the costs (such as historical costs)...
As a consequence, these persons should possess very good skills for the forecasting process and a deep experience and superior understanding of the company's activity in order to assure its future success.
I do that every day. But I've never done that with a car. I buy what I need to look successful. Besides, how would I ever calculate a payback when I have no idea what gasoline will cost in the future?" A few said with apparent certainty, "one year" or "two years." However, when we inquired where the number came from, they simply asserted that they spent lots of
Hans Wendt, a staff photographer with the San Diego County's public relations office, who was covering an outdoor press event in North Park at the time of the accident, took two dramatic post collision still color photographs of the falling Boeing-727 trailing blue-and-white smoke streaking from its right wing while plunging towards the ground. They appeared in several publications around the world including the cover of Time magazine. Another television
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now