Scope Creep

question 79

Multiple Choice

Scope creep

• A) is acceptable because the informal changes help with a better product.
• B) should be avoided by the project team or contractor.
• C) never causes a delay to the schedule.
• D) is expected by the contractor to have better benefits and no more costs.

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Definitions:

GAAP

GAAP stands for Generally Accepted Accounting Principles, which are a collection of commonly-followed accounting rules and standards for financial reporting.

Estimates

Approximations or educated guesses used in accounting to record transactions where the exact amounts cannot be determined.

Cost of Goods Manufactured

The total expense incurred in manufacturing goods, including materials, labor, and overhead costs, within a specific period.

Income Statement

A financial statement showing the company's revenues and expenses over a specific period, leading to net profit or loss for that period.