Corrections to M & E Study guide

Important Information: Forums Managerial and Economic Analysis Forum Corrections to M & E Study guide

This topic contains 2 replies, has 3 voices, and was last updated by  cjansen85 1 year, 9 months ago.

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  • #1283

    duchessanne
    Member

    Hi TEO, My copy of TR-34 is revised on April 2013 and I noticed that most of the errors noted in the Study Guide has been corrected. Regarding Chapter 9 questions 6 and 7, the book is correct:

    Question 6 increase drilling cost caused by in the increase number of drilling days. The correct answer is (A) $150,000 because it is 3 extra of drilling days over the forecast (factor within the company’s control/ performance evaluations) times the estimated day rate of $50,000/day.

    Question 7 increase drilling cost caused by increase/ decrease in day rate is (D) (76,000). It is because the actual day rate is not within the company’s control (assuming it really is), and therefore it is the difference of the rate (2,000) times the actual number of drilling days.

  • #1285

    teobyrne
    Keymaster

    DuchessessAnne,
    Thanks! I moved your post to a new topic under Managerial & Economics. Thanks so much for the input. I’m so busy right now I’ll have to take the corrections under advisement and fix my study guides later.
    How many exams do you have left to go?

  • #1412

    cjansen85
    Member

    I think TEO’s logic is more consistent with the instruction in the study guide. The Error worksheets were helpful and look right to me. Thanks.

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