If You Hired a Consulting Firm to Develop a System

question 53

Multiple Choice

If you hired a consulting firm to develop a system which is estimated to take four months to complete with the tasks evenly divided over the four months and you agree to pay for the project with equal monthly installments, those payments would be called:

• A) Planned Value (PV)
• B) Budget At Completion (BAC)
• C) Actual Cost (AC)
• D) Earned Value (EV)
• E) None of these

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Definitions:

Responsibility Centers

Parts or segments of an organization for which managers have authority and accountability for performance, often categorized as cost, profit, or investment centers.

Revenue Generation

The process through which a business produces income from its activities, typically through sales of goods or services.

Cost Generation

Relates to the creation or incurrence of costs or expenses in the production of goods or services.

Controllable Margin

The portion of profit or margin that can be influenced by managing operating costs and expenses.