Describe the Ideal Approach for a Project Manager to Develop

question 89

Essay

Describe the ideal approach for a project manager to develop optimal estimates for a project's time and costs.

Understand the principles of super-variable costing and its effect on net operating income.

Calculate net operating income using variable and super-variable costing methods.

Analyze the effect of production and sales volume differences on net operating income.

Comprehend the comparison between variable costing and absorption costing systems.

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Definitions:

EBIT-EPS Lines

Graphical representations that show the impact of financing choices, especially debt and equity, on a company's earnings per share (EPS) for various levels of earnings before interest and taxes (EBIT).

EPS

Earnings per share; a measure of a company's profitability calculated by dividing its net income by the number of outstanding shares.

EBIT

Earnings Before Interest and Taxes, a profitability measure for companies that doesn't include costs associated with taxes or interest.

Breakeven Diagram

A graphical representation that shows the point at which total cost and total revenue are equal, with no net loss or gain.