OROMIA STATE UNIVERSITY

DEPARTMENT OF PROJECT MANAGEMENT

Project Cost Management Group Assignment (20%)
Delivery Date: December 31, 2023 Deadline for Submission: January 14, 2024

1. Compare and contrast the International Financial Reporting Standards (IFRS) and the
Generally Accepted Accounting Principles (GAAP).
2. Briefly mention the methods, tools and techniques to estimate costs, determine budget and
control costs.
3. The total assets and total liabilities of Coca-Cola and Pepsi Co. are shown below.

 Determine the owners’ equity of each company.

4. After several months of planning Mr. X started a hotel that is called ABC hotel. The following
events occurred during its first month:
a. On August 1, Mr. X invested $3,000 cash and $15,000 of equipment in ABC hotel.
b. On August 2, ABC hotel paid $600 cash for furniture.
c. On August 3, ABC hotel paid $500 cash for rental of building.
d. On August 4, it purchased $1200 of equipment on credit for the hotel (using a long-term
note payable).
e. On August 5, ABC hotel opened for business, cash received from services provided in the
first week and a half of the business (ended August 15) is $825.
f. On August 15, it provided $100 of service on account.
g. On August 17, it received a $100 check for service previously rendered on account.
h. On August 17, it paid $125 cash to assistances for working during the grand opining.
i. Cash received from services provided during the second half of August is $930.
j. On August 31, it paid a $400 installment toward principal on the note payable entered in
to on August 4.

1
 k. On August 31, Mr. X made a $900 withdrawal for personal use.
Required: a) Record each transaction in a two-column journal (Journal Entries)
b) Post the journal in to the ledger
c) Prepare a trial balance as of August 31
d) Prepare the following financial statements (Income statement, Statement of
owners’ equity, Balance sheet and cash flow statement)
5. Financial Statement Analysis
Table 1: Income statement for Pepsi co, incorporation for the year ended, 1998

Table 2: Balance sheet for Pepsi Co. incorporation for the year 1997 and 1998

2
 Required:
 Based on the given data from the above figures, find out the following for the year 1997 & 1998 (N.B: For those
ratios that uses input of income statement figure, you can calculate those ratios for the year 1998):
a. Current ratio b. Quick ratio c. A/R turnover & ACP (DSO)
d. Inventory turnover ratio e. Total Asset turnover ratio f. Debt ratio
g. Long-Term Debt-Equity Ratio h. Debt-equity ratio i. Times interest earned ratio
j. Net profit margin ratio k. Return on Asset (ROA) & ROE

6. ODA Company has a unit selling price of $400, variable costs per unit of $240, and fixed costs of
$180,000. Compute the break-even point in units and sales dollar using:
i) An equation method iii) Contribution margin method iii) Graph method

7. Mi-Adama Company makes calculators that sell for $20 each. For the coming year, management
expects fixed costs to total $220,000 and variable costs to be $9 per unit.
Instructions:
a) Compute break-even point in units using the mathematical equation method.
b) Compute break-even point in dollars using the contribution margin (CM) ratio.
c) Compute the margin of safety percentage assuming actual sales are $500,000.
d) Compute the sales required in units and in dollars to earn net income of $165,000

3
 OROMIA STATE UNIVERSITY
DEPARTMENT OF PROJECT MANAGEMENT
Project Cost Management Individual Assignment (Article Review) (15%)
Delivery Date: December 31, 2023 Deadline for Submission: January 14, 2024

Introduction: This article review and summary activity is designed to enable you to enhance your
analytical skill by critically reviewing journal articles, working papers and similar scientific works
related to topics in project management. The review involves identification of the theme the paper
attempts to address, evaluation of the theories the author presents as a basis of the study and a
comment on validity of the position the author has taken. More importantly, you should evaluate
conclusion of the article in light of the existing literature and also comment as to which particular
theory it approves or disproves. Hence select an empirical evidence in the area of project
management and other related areas and review it and address the following vital issues:
 What is the major objective of the article?
 What are the theories discussed in the paper and how do they compare?
 If the author argues supporting/rejecting a theory, what are his reasons and how valid are
the reasons?
 How well are conclusions of the article aligned with the findings of the study?
 What exactly does the work contribute and relate to the overall topic of your course?
 In your opinion, what were the strengths and weaknesses of the paper? You can state your
criticism (if any).

Your Article review and summary report should contain the following sections
 Purpose of the article/ Problem statement
 Specific objectives it tries to achieve
 Data used (including its type-quantitative or qualitative)
 Method of data analysis
 Findings, and Conclusion
 Your Criticism (Strength and weakness of the study)
Note: For articles with more than 25 pages, the review report should not exceed 5 pages.
4