The Best Thing a Project Manager Can Do When Noticing

question 79

Multiple Choice

The best thing a project manager can do when noticing common cause variation in a project's monthly budget summary is to:

• A)call another meeting and brainstorm causes for the variance.
• B)call the workers responsible for the variance into the office and dismiss them immediately.
• C)do nothing.
• D)call the suppliers responsible for the increased cost and negotiate lower material costs.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or jobs, based on a predetermined formula, prior to actual production.

Customizing Department

A division within a company that modifies products to meet specific requirements or preferences of customers.

Direct Labor-Hours

A measure of the time directly spent by workers on producing a product or delivering a service, often used to allocate manufacturing overhead.

Overhead Applied

The allocation of overhead costs to produced goods based on a pre-determined rate or basis such as direct labor hours or machine hours.