The Fundamental Purpose of the Starting Phase of Project Management

question 12

True/False

The fundamental purpose of the starting phase of project management is to set the ground rules for the project and the team.

---

Definitions:

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross profit but before income taxes and interest are deducted.

Fixed Monthly Expenses

Regularly occurring costs that remain the same each month, such as rent or salaries.

Contribution Format Income Statement

An income statement format that separates fixed costs from variable costs and is used to calculate the contribution margin.

Unit Sales

The quantity of products sold by a company, not accounting for any bulk, wholesale, or grouping discounts.