Barring a Change in Project Scope and Given a Cost

question 50

Multiple Choice

Barring a change in project scope and given a Cost Performance Index (CPI) that is less than 1, the most reasonable inference to draw is that:

• A) The project will likely finish earlier than planned.
• B) The project will likely finish later than planned.
• C) The project will likely cost more than planned.
• D) The project will likely cost less than planned.
• E) The project will likely be on time and on budget.

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Definitions:

Supervisory Expense

The costs associated with the management and oversight of employees, including salaries of supervisors.

Activity Rate

A calculation used in activity-based costing to allocate overhead costs to products or services, based on the amount of activity consumed.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities and resources that go into their production.

Equipment Depreciation

The process of allocating the cost of tangible assets over its useful life, representing how much of the asset's value has been used up.