Allocating Total Project Costs for the Various Elements to the Appropriate

question 52

Multiple Choice

Allocating total project costs for the various elements to the appropriate work packages will establish

• A) the committed costs for the work package.
• B) the anticipated expense for the work package.
• C) how to apply resources to the work package.
• D) a total budgeted cost (TBC)for each work package.

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Definitions:

Lower of Cost

A principle requiring that inventory be recorded at the lower of its historical cost or current market value.

Net Realisable Value

The estimated selling price in the ordinary course of business minus any costs necessary to make the sale, used primarily in inventory valuation.

Inventory Accounts

Accounts used in accounting to track the cost of the inventory held by a business until it is sold or otherwise disposed of.

Cost of Goods Manufactured

The total cost of producing goods during a specific period, including materials, labor, and overhead.