Which of the Following Statements Is True in Comparing the Standard

question 34

Multiple Choice

Which of the following statements is true in comparing the standard S-curve evaluation with the EVM variance?

• A)Unlike the standard S-curve evaluation,the EVM variance is meaningful because it is based not simply on the budget spent but on value earned.
• B)Unlike the EVM variance,the standard S-curve evaluation is meaningful because it is based simply on the budget spent.
• C)Both the standard S-curve evaluation and the EVM variance are based on the budget spent.
• D)Both the standard S-curve evaluation and the EVM variance are based on the value earned.

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Definitions:

Straight-line Method

An approach to depreciation that distributes the total cost of an asset evenly across its expected lifespan.

Salvage Value

The predicted leftover value of an asset following the end of its usable period.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Salvage Value

An estimate of the residual value of an asset at the end of its useful life, after it has been fully depreciated.