Question

. Critical Accounting Estimates: Select any industry, such as construction, retail, drug manufacturers, financials, capital goods, energy, utilities, services, computer software, computer hardware, Internet, and so forth. What do you think would be the critical accounting estimates of companies in this industry and why?. Critical Accounting Estimates: Select any industry, such as construction, retail, drug manufacturers, financials, capital goods, energy, utilities, services, computer software, computer hardware, Internet, and so forth. What do you think would be the critical accounting estimates of companies in this industry and why?

Answer 1

Here i select the industry is construction.

The critical accounting estimates for construction industry is as follows.

1. Estimates of cost of each construction project.

2. Estimates of manpower used to each construction site.

3. Number of skilled and unskilled employees required to complete a construction

4. Any legal issues are attached to the land of construction site.

5. What is the quoted amount of construction whether it is possible to complete that project in that amount.

6. Whether the company have to acquire any assets for completion of project .

Reasons for above accounting estimates.

1. Every project will start with calculating the cost of project.

2. In construction bussiness we need more humN resources

3. In that human resources we need skilled and unskilled to make proper work.

4. Before we start construction we need to approach a lawyer to get legal opinion

5.the quoted amount is suitable or there is any additions or deletions to it

6. Some constructions are different for the traditional constructions . These may require new assets like cranes and other equipment.

These are the critical accounting estimates and reasons for estimates of construction bussiness.

I hope, all the above mentioned points are useful to you.

Thank you.