A Company Has Recently Incurred Significant Cost Overruns on One

question 464

Multiple Choice

A company has recently incurred significant cost overruns on one of its construction projects. Management suspects that these overruns were caused by the contractor improperly accounting for costs related to contract change orders. Which of the following procedures would be appropriate for testing this suspicion?

• A) Verify that the contractor has not charged change orders with costs that have already been billed to the original contract. II. Determine if the contractor has billed for original contract work that was canceled as a result of change orders. III. Verify that the change orders were properly approved by management.
• B) I only
• C) III only
• D) I and II only
• E) I and III only

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Definitions:

Classically Conditioned

The process by which a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit similar responses.

Aversive Stimulus

Aversive Stimulus is an unpleasant or painful stimulus used to induce changes in behavior through aversion therapy.

Operant Response

A behavior that is modified by its consequences, through reinforcements or punishments, in operant conditioning.

Aversive Stimuli

An unpleasant or harmful object, event, or situation that is avoided or intended to be avoided by an organism or individual.