The Project Manager Is Reviewing the Earned Value of Work

question 404

Multiple Choice

The project manager is reviewing the earned value of work completed compared to the planned value and is representing it in a dollar figure. This type of analysis is an example of which of the following?

• A) Cost performance index
• B) Risk mitigation
• C) Schedule variance
• D) Cost variance

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Misleading

Presenting information in a way that creates a false impression or misconstrues facts, often to deceive.

Overproduction

Overproduction occurs when more goods are produced than are demanded by the market, often leading to excess inventory and wastage of resources.

Lost Sales

Revenue that was not earned due to an inability to meet customer demand or because the customer chose a competitor's product.