Which of These Statements About Early Termination Decisions Is Best

question 119

Multiple Choice

Which of these statements about early termination decisions is best?

• A)The decision to pull the plug is usually clear-cut.
• B)A project's viability is usually a purely internal issue.
• C)Projects that can fulfill a useful purpose in the marketplace are not killed.
• D)External reasons,such as a change in the organization's environment,are often the reasons for project termination.

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services produced or sold.

Fixed Costs

Expenses that remain constant regardless of the level of production or sales activity, such as rent, salaries, and insurance premiums.

Variable Service Department Costs

Expenses in a service department that fluctuate in direct proportion to changes in the level of service activity or volume.

Budgeted Rate

A predetermined rate, often used for allocating costs or resources in a budget based on estimated expenditures.