Which of the Following Statements Is Not True About a Firm

question 13

Multiple Choice

Which of the following statements is not true about a firm and its project accounting?

• A) each firm has its own rules with regard to the allocation of overhead
• B) most firms must comply with the Sarbanes-Oxley Act
• C) the project manager must rely on the accounting department to make special allowances for his/her project
• D) most firms have their own accounting idiosyncrasies
• E) unexpected charges may suddenly appear when the PM least expects it

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Definitions:

Balanced Scorecard

This is a strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Internal Process

Activities and operations carried out within an organization to ensure the effective creation of goods or delivery of services.

Innovation And Learning

The process of creating new ideas, products, or methods and the acquisition of knowledge to improve efficiency or effectiveness.

Residual Income

A measure of the income that exceeds the minimum required return on a company's investments or operations.