Blanket Purchase Orders

question 18

Multiple Choice

Blanket purchase orders:

• A)reduce costs by decreasing the number of purchase orders issued.
• B)cover multiple purchase requirements on one order.
• C)are difficult to prepare.
• D)reduce costs by decreasing the number of purchase orders issued and cover multiple purchase requirements on one order.
• E)reduce costs by decreasing the number of purchase orders issued,cover multiple purchase requirements on one order,and are difficult to prepare.

---

Definitions:

Earned Value

A project management metric that measures project performance by comparing the work performed's value to the planned value and actual cost.

Actual Cost

The total expense incurred for a project, activity, or item, reflecting the real financial expenditure.

Cost Variance

The difference between the budgeted or estimated cost of a project and the actual cost incurred.

Cost Performance Index

A measure in project management that calculates the efficiency of budget utilization by dividing the earned value by the actual costs.