Description
Book SynopsisHelping project managers figure out how costs interact with the general ledger as well as make decisions about whether to continue with the project as planned, this book reveals how project expensing should be capitalized or expensed in order to keep the budget on track and improve profitability.
Table of ContentsPreface xi
Acknowledgments xv
Chapter 1 Project Management and Accounting 1
Mission, Objectives, Strategy 2
Project Planning 6
Project Execution and Control 11
Notes 21
Chapter 2 Finance, Strategy, and Strategic Project Management 23
DuPont Method 24
Note 44
Chapter 3 Accounting, Finance, and Project Management 45
Project Team and Financial Success 46
Calculating Return on Investment 53
STO Solution Model 59
Implementing Strategy throughout the Company 61
Conclusion 68
Notes 69
Chapter 4 Cost 71
Definition and Purpose of Cost 73
Cost Classifications 74
Cost Decisions 80
Cost of Quality 83
Cost and Industry 85
Manufacturing Industry 89
Conclusion 90
Note 91
Chapter 5 Project Financing 93
Debt Financing 93
Corporate Bonds 95
Equity 97
Income Tax Effect 99
Cost Implications of the Funding Methodology 100
Conclusion 112
Chapter 6 Project Revenue and Cash Flows 115
Role of the Financial Manager 115
How to Calculate the Statement of Cash Flows for a Company 119
Free Cash Flows 127
Methods for Calculating a Project’s Viability 128
Conclusion 137
Notes 139
Chapter 7 Creating the Project Budget 141
Introduction 141
Case Study: Pontrelli Recycling, Inc. 142
Planning for the Future 147
Creating a Project Budget 157
Review Project Financials 161
Project Cash Flow 162
Conclusion 168
Note 169
Chapter 8 Risk Assessment 171
Risk to Your Reputation 175
Competency 176
Integrity and Honesty 177
Organizational Structure 178
Human Resources 179
Reports on Financial Statements 180
Project Specific Risk 197
Engagement Acceptance 199
Conclusion 200
About the Web Site 201
Index 203
