The Value-Driven Approach Focuses on

question 40

Multiple Choice

The Value-Driven Approach focuses on

• A) completing the project on time.
• B) a bug-free application.
• C) providing value to the organization.
• D) completing the project under budget.
• E) selecting the right team members, skill sets, and resources for the project.

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Definitions:

Absorption Costing

This refers to an accounting strategy that comprehensively adds the costs of direct materials, direct labor, and both varying and fixed overheads into the total cost of manufacturing a product.

Variable Costing

A pricing approach that incorporates solely the variable production expenses—such as direct materials, direct labor, and variable manufacturing overhead—into the unit cost of a product.

Fixed Overhead

Expenses that remain constant regardless of the production or sales volume, including items like lease payments, wages, and insurance premiums.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.