Determining the Earned Value Involves Collecting Data on the Percent

question 90

Multiple Choice

Determining the earned value involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the ____ of the work package by the percent complete.

• A) total budgeted cost (TBC)
• B) cumulative budgeted cost (CBC)
• C) cumulative earned value (CEV)
• D) cumulative actual cost (CAC)

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Definitions:

Income Statement Approach

A method to estimate bad debts expense by focusing on the income statement and adjusting the allowance for doubtful accounts to reach a desired net realizable value.

Bad Debts Expense

The cost associated with the estimated amount of receivables that a company is unable to collect from its customers.

Balance Sheet Approach

A method used for estimating uncollectible accounts by analyzing the accounts receivable on the balance sheet.

Bad Debts Expense

The portion of receivables that are estimated to be uncollectible due to customer defaults.