The Concept of Project Portfolio Management Holds That Firms Should

question 83

Multiple Choice

The concept of project portfolio management holds that firms should:

• A)regard all projects as unified assets.
• B)manage projects as independent entities.
• C)focus on short-term strategic goals.
• D)focus on long-term constraints.

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Definitions:

Product Cost

The total cost associated with producing a product, including direct labor, direct materials, and manufacturing overhead.

Variable Costs

Expenses that vary directly with levels of production or sales volume.

Cost Behaviour

The way in which costs change or remain stable in relation to variations in business activity levels, categorized into fixed, variable, and mixed costs.

Total Unit Costs

The complete cost incurred to produce, store, and sell one unit of a product, including direct materials, labor, and overhead.