Which of the Following Statements About the Business Case Is

question 8

Multiple Choice

Which of the following statements about the business case is NOT true:

• A) A business case provides an analysis of feasibility
• B) A business case provides senior management with sufficient information to fund a project.
• C) A business case provides details of possible impacts, costs and benefits.
• D) A business case provides a project budget.
• E) A business case may be a large, formal document.

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Definitions:

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials and labor costs.

High-Low Method

A method utilized in managerial accounting for predicting variable and fixed costs by analyzing the activity's maximum and minimum levels.

Contribution Margin Ratio

A measure that shows the percentage of sales revenue that exceeds the variable costs of production.

Variable Costs

Variable costs are expenses that change in proportion to the activity of a business, such as raw material costs, which vary with production volume.