Which of the Following Statistics from Studies on Failed Projects

question 72

Multiple Choice

Which of the following statistics from studies on failed projects is not true?

• A) Between 30 and 40 percent of software projects fail in terms of budget, schedule, and quality.
• B) Thirty-two percent of technology investments are completed on time, within budget, and with requirements met.
• C) The average cost overrun of IT projects is 60 percent.
• D) One in six IT projects have an average cost overrun of 200 percent.

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Definitions:

Fixed

Refers to expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Contribution Margin

The difference between a company's sales revenue and variable costs, which contributes to covering its fixed costs and generating profit.

Variable Cost

Expenses that change in proportion to the amount of goods produced or the volume of services provided.

Variable Costing

A costing approach in which only variable manufacturing costs are product costs, and fixed manufacturing costs are period costs (expenses).