The Forecasted Cost at Completion Is

question 38

Multiple Choice

The forecasted cost at completion is

• A) a ratio of performance to costs.
• B) an estimate of the costs of the work remaining in the project.
• C) the planned value of the project.
• D) an estimated cost at the completion of the project based on project performance.

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Definitions:

Payback Period

The amount of time it takes for an investment to generate enough cash flow to recover its initial cost.

Accounting Rate of Return

A method used to determine the profitability of an investment, calculated by dividing the average annual accounting profit by the initial investment cost.

Straight-Line Depreciation

A methodology for dispensing the cost of a durable asset over its useful period in uniform annual allocations.

Accounting Rate of Return

A financial metric used to measure the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.