Course Hero Logo

Once these amounts have been determined graph the

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 306 - 309 out of 446 pages.

Once these amounts have been determined, graph the final funding amounts starting with thefinal cost of $750,000 and final fee of $90,000 on the graph paper provided (this results in a pricepoint of $840,000.Once all of the price points have been determined, draw line segmentsbetween each of the points.The graph should have the same general shape as the graph for CPIFat slide 3.
CON 270, Intermediate Cost and Price Analysis15CPIF Initial Graph.ppsxClicking this icon for the PowerPoint Presentation will open the aboveslide in a PowerPoint slide show where each element is animated toCPIF InitialGraph.ppsx
CON 270, Intermediate Cost and Price Analysis16build as you go. To see the animated builds you have to click on the slide show icon in the lowerright.This convention will be utilized throughout this chapter, so where you see a hyperlink witha .ppsx extension, there will a PowerPoint build slide.One word about these build slides:The intent is not for you to go directly to the builds to see theanswers.The intent is for you to do the work by hand initially.This handiwork reinforces thelearning and is the way many experienced price analysts first lay out an incentive arrangementwhen establishing negotiating positions and monitor the impacts of offers and counteroffersduring negotiations.Once you have done the work by hand, you may use the build slide to checkyour work.Inclusion of these builds is primarily intended as a study aid and to use as a resourcewhen you are dealing with incentive contracts as a practitioner.CPIF Graphing (with the deal elements):We will now graph a CPIF arrangement with just the deal elements.Although graphing by handmay seem somewhat tedious in our technology driven world, there are significant advantages tolaying the arrangement out by hand.Immediate payback for you as a student is that graphingwith the elements reinforces concepts you just learned in computing final CPIF prices andgraphing them out.Additionally, graphing in this manner serves as a building block skill whichwe will use when we start developing objectives share lines in a contract formation/negotiationmode later in this lesson. Finally, this skill enables practitioners (Government contractnegotiators/administrators/price analysts) to develop a valuable job aid for any incentive contractthat gets placed in front of them to administer.The old adage that “A picture is worth a thousandwords” is appropriate here.By graphing the elements, you can see what level of sharing istaking place at various cost points and you can easily estimate from the graph what a projectedfinal price would be at various final cost points.Not only will this provide the practitionerinsight into potential motivations of the contractor as contract performance is ongoing, it willalso aid in ensuring that the financial manager is aware of any potential additional fundingrequirements.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 446 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Winter
Professor
WEST
Tags
Cost Accounting, Acme Incorporated

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture