The Chief Financial Officer Receives the Following Information on a Project

question 35

Multiple Choice

The chief financial officer receives the following information on a project: PV = 10,000, EV = 12,000, AC = 8,000, BAC = 20,000, EAC = 13,333. How is the project doing in terms of schedule?

• A) More work has been done than planned
• B) Less work has been done than planned
• C) The same amount of work has been done than planned
• D) The project has cost more than planned
• E) There is not enough information to draw a conclusion

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Definitions:

Credit Period

The time frame allowed by a seller to a buyer to pay for goods or services received, usually expressed in days.

Operating Cycle

The duration of time it takes for a company to buy inventory, sell it, and convert the sale back into cash. It reflects the efficiency of a company's inventory management and sales processes.

Inventory Cycle

The inventory cycle involves the process from purchasing goods for inventory to selling them to customers, and is key in determining the efficiency of a company's inventory management.

Credit Terms

The conditions under which credit will be extended to a borrower, including the repayment schedule and interest rates.