At the Beginning of the Project, It May Not Be

question 33

Multiple Choice

At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy.This is especially true for

• A)projects with a short term.
• B)longer-term projects.
• C)projects that are similar to ones completed by the organisation before.
• D)projects with activities that are serially related.

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Definitions:

Implicit Costs

Costs that represent the opportunity cost of using resources that a business already owns, rather than explicit outlays of cash.

Total Revenue

The total amount of money received by a company from selling goods or services before any expenses are subtracted.

Explicit Costs

Direct, out-of-pocket payments for resources or services used in the production of goods or services.

Implicit Costs

Denotes the opportunity costs of utilizing resources owned by the firm for its operations, instead of allocating them elsewhere to earn a return.