A Negative Cost Variance Indicates the Project Is Over Budget

question 64

True/False

A negative cost variance indicates the project is over budget.

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Definitions:

Raw Materials

The basic materials and components required in the manufacturing process to produce finished goods.

Production

The process of creating goods and services using labor, machinery, and raw materials.

Finished Goods

Items that have finished being manufactured and are prepared for purchase by consumers.

Inventory

The raw materials, work-in-progress, and finished goods that a company holds for the purpose of sale in the future.