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Your Friend Comes to You with a Problem

question 71

Multiple Choice

Your friend comes to you with a problem. It seems his shrimp boats aren't catching nearly as much shrimp as they used to. He can't understand why because originally he caught all the shrimp he could handle. Each year he added a new boat, and for a long time each boat caught tons of shrimp. As he added more boats, there came a time when each boat caught somewhat fewer shrimp, and now, each boat is catching a lot less shrimp. Which of the following topics might help your friend understand the source of his problem?


Definitions:

Schedule Variance

Schedule variance is a project management metric that measures the difference between the planned and actual progress of a project, used to assess project health and performance.

Cost Variance

The difference between the budgeted cost of a task or project and the actual cost incurred.

Spending

The act of utilizing financial resources to purchase goods, services, or assets, or to cover operating costs.

Cost Aggregation

The process of combining individual costs or expenses to form a summary total.

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