The Benefits, Described in the Text, of Using a Project

question 49

Multiple Choice

The benefits, described in the text, of using a project management approach to developing information systems include all of the following except:

• A) providing a common set of tools and controls which provides a common language to compare projects throughout the organization
• B) the ability to better estimate and control costs and schedules which leads to a more effective conservation of company resources
• C) improved communication and status reports leads giving the developers the ability to manage expectations of stakeholders
• D) competitive advantage for internal developers whose work might have to be outsourced if the quality and cost of their work can be bettered by outside competition
• E) the coupling of project success to the selection of team members and the skill sets and resources that they bring to the project.

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Definitions:

Net Operating Income

A company's income after operating expenses are subtracted but before deducting interest and taxes.

Break-even Sales

refers to the amount of revenue needed to cover all fixed and variable costs, at which point a business neither makes a profit nor incurs a loss.

Absorption Costing

A technique in accounting that rolls all manufacturing expenses including direct material costs, direct labor, and every overhead, regardless if fixed or variable, into the overall cost of a product.

Unit Product Cost

The overall expense involved in creating one unit of a product, encompassing direct materials, direct labor, and distributed overhead costs.