Management of Mitt Telecoms

The one-off penalty of $500 as a result of pulling out two engineers from Contract X is not included. This is because penalties or damages paid to statutory authorities or other third parties do not form part of the cost ((Bhattacharyya, 2005. Wildman, 2009). Included – $3,000. Not included – $500.
(3) The technical advisor will work for eight hours at an hourly rate of $40. However, because he is currently occupied, he will be paid overtime. The cost pertaining to the eight regular hours are included. The extra cost of overtime is not included. Overtime pay is an abnormal cost, for which reason it will not form part of the project cost (Bhattacharyya, 2005. Van Derbeck, 2007). Included – $320. Not included – $160.
(4) The site inspector, an independent contractor not connected with MT Co, charged his two visits directly to Push Co., at $200 per visit. This is not included in the costing as it has not been incurred by MT Co. (Wildman, 2009) Not included – $400
(5) MT Co’s trainer will deliver one day’s training at Push Co., equivalent to $50 of his regular salary ($1500/30). He is also paid a commission of $125 for onsite training, which is justified for extra expenses incurred, effort expended, and risks assumed in conducting onsite rather than in-house training, and therefore a variance due to normal reasons. These expenses are both regular and normal for the project, and hence should form part of the costing (Van Derbeck, 2007. Wildman, 2009). Included – $125 and $50.
(6) Materials shall be charged at their actual cost. The actual costs of the first 80 telephone handsets were bought at $16.80, and the next 40 units will be acquired at $18.20. Assuming the company’s inventory management is on a first-in-first-out (FIFO) basis, the 80 telephone handsets will be provided to Push Co. at the actual costs they were acquired (Bhattacharyya, 2005). Included – $1,344
The specified computerized control system for Push Co.’s system is Swipe 2. As such, only Swipe 2 should be used in the system, at its acquisition cost.&nbsp. Included – $10,800.