Refining Estimates May Be Necessary for a Number of Reasons

question 15

Multiple Choice

Refining estimates may be necessary for a number of reasons. For example, resource shortages, in the form of people, equipment, or materials, can extend original estimates. This is a good example of

• A) hidden interaction costs.
• B) things going wrong on a project.
• C) normal conditions not applying.
• D) changes in project scope.
• E) the customer not being clear about their expectations.

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Definitions:

Divisional Profit

The earnings generated by a distinct operational unit or division within a larger organization, often assessed to evaluate the unit's financial performance.

Coordination

The organization and alignment of activities, tasks, and resources to achieve a specific goal or objective efficiently.

Divisional Managers

Managers responsible for overseeing specific divisions within an organization, focusing on its performance and outcomes.

Profit Centers

Divisions or segments within a company that are directly responsible for generating its profits by making their own revenue and controlling their costs.