LEOP, JAMES KEANNEL A.

2220144
PSMBC – Construction Accounting, Cost Control and Finance Quiz 1.1

I affirm that I shall not give or receive any unauthorized help on this quiz/exam and that all work
shall be my own.
Your company is developing land with more or less 5,000 square meters for medium-rise condominium units.
You, as a licensed Engineer and with varied experiences in building construction are very busy handling the
operations, accounting, and finance as well as the marketing aspects of your company.
Required:
1. What will be the accounting and financial management implications for the project being undertaken?
Here are some of my accounting and financial management implication for the project:
• Ensuring that the accounting system appropriately tracks project and general overhead
costs.
• Determining whether the individual projects are over-budget or underbilled
• During each project, the contractor bills in stages for work performed to date and records
the earned revenue and expenses at each stage.

2. What are the options to ensure proper management of the company's records and finances?

• Have a concise business plan

• Keep up-to-date accounting records
• Know your day-to-day costs

3. Overall, what is the impact of doing business without any knowledge of accounting and financial
management?
Accounting and financial management play big role in business. The business operates money, if
you don’t control that money, you don’t control the business. Also, without proper accounting for the business’
income and expenses, you can not manage the flow of the money (in and out).