why allowance for wastage is necessary when preparing an estimate/ built up rate？

Expert Solution

Allowance of waste is an important parameter because of the following reasons

Materials get wasted at the site during construction due to various reasons like spillage , some get stuck in the mixing areas and containers, sometimes the concrete mix doesn't become satisfactory and have to be dumped , sometimes the materials get spoilt etc .Basically, we know that we cannot use 100% of the materials , some get wasted due to different factors.
In calculation for various materials , the calculated amount is the exact amount of materials required for the construction excluding the wastage .
The allowance for wastage is a certain amount of surplus materials added so that there is no shortage of materials while the construction is ongoing.
The cost estimation for materials are done after calculating the total amount of the materials, if the allowance for waste is not added , in case of certain contracts , it will result in loss of the builders.

Ally Wells answered 8 months ago

In preparation for your final assignment you will be preparing the documents necessary to set up...

In preparation for your final assignment you will be preparing the documents necessary to set up a corporation and will also discussing the advantages and disadvantages of the three most common types of business entities. The first step is to go to the Virginia State Corporation commission website and download the applicable forms for creation of a corporation in Virginia. Two then to fill out those forms as if you were preparing an actual Corporation. These forms will be submitted...

When a firm provides for credit losses under the allowance method, why is the allowance for...

When a firm provides for credit losses under the allowance method, why is the allowance for doubtful accounts credited rather than accounts receivable?

Why was Washington DC built how and when it was? Who really built Washington DC?

In preparing protein sample for crystal structure : (a) Why is it necessary to use large...

In preparing protein sample for crystal structure : (a) Why is it necessary to use large amount of crystallisation solutions for the vapour diffusion experiment ? (b) Give reason why sitting drop format may be used for the experiment .(c) Explain why it will not be necessary to make selenium derivatives of enzyme used for the crystal trials .

Why is a "pre-determined overhead rate" necessary when assigning manufacturing overhead cost to products? Why don't...

Why is a "pre-determined overhead rate" necessary when assigning manufacturing overhead cost to products? Why don't we use similar "rates" when assigning the cost of direct materials or direct labor to products?

Why is it necessary to rate the financial health of a hospital?

What is the closing process, and why is it necessary prior to preparing financial statements? Include...

What is the closing process, and why is it necessary prior to preparing financial statements? Include temporary and permanent accounts in your discussion. Consider using an example of a real company to discuss why the closing process is a necessary step in the accounting cycle.

4. Why would broadband services (internet and cable) be necessary components of preparing the economy for...

4. Why would broadband services (internet and cable) be necessary components of preparing the economy for the post-COVID world? 5. Identify and describe TWO ways that the COVID-19 has exacerbated (made worse) close contact economic sectors such as cruise lines and shopping malls. A. B. Read this to answer the questions: The numbers evoke the worst economic nightmares in American history. But White House economic adviser Kevin Hassett freely admits he can't map the path out. "A lot of it...

why should brands be built by going up both aides of the brand resonance pyramid? hive...

why should brands be built by going up both aides of the brand resonance pyramid? hive an examples .which brabd fewlings ate experiential and immediate and which are provate and enduring?

Come up with (2) reasons why it might be necessary to audit workbook formulas in a...

Come up with (2) reasons why it might be necessary to audit workbook formulas in a business. Would you use Solver, Scenario Manager, or Goal Seek at work or at home (or both)? How would you use these tools?

Question