A Thorough Evaluation of How Well a Project's Actual Performance

question 12

Multiple Choice

A thorough evaluation of how well a project's actual performance matches the projections made when the project was proposed is called a

• A) pre-audit.
• B) post-audit.
• C) risk analysis.
• D) sensitivity analysis.

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Definitions:

Contribution Approach

A method of income statement presentation where variable costs are deducted from sales to find the contribution margin.

Expected Cost

An estimate of the cost associated with a project or production, taking into account various factors like labor, materials, and overhead.

Sell

To sell involves the exchange of a product or service for money, constituting a basic economic transaction between a provider and a receiver.

Fixed Maintenance Cost

The portion of total maintenance costs that does not fluctuate with changes in activity level or output.