The Movement Toward the Real Options Methodology for IT Project

question 42

True/False

The movement toward the real options methodology for IT project portfolio management derives from a financial model that considers the management of a portfolio of stock investment options.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the amount of receivables that may not be collectible.

Net Income

A company's total earnings or profit, calculated as revenue minus expenses, taxes, and costs.

FOB Destination

A shipping term indicating that the seller is responsible for the goods until they are delivered to the buyer's specified location, whereupon title and risk of loss pass to the buyer.