Occasionally,organizations Will Approve Projects That Are Forecast to Lose Money

question 30

Multiple Choice

Occasionally,organizations will approve projects that are forecast to lose money when fully costed and sometimes even when only direct costed.Which of the following is not a good reason for doing this.

• A)Acquire knowledge concerning a specific or new technology
• B)Get the organization's "foot in the door"
• C)Improve their competitive position
• D)They plan on cutting corners on work and material,or forcing subsequent contract changes to make up the cost

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Definitions:

Accounts Receivable

Accounts receivable represents money owed to a company by customers who have purchased goods or services on credit.

Credit Sales

Sales made by a business where payment is deferred to a later date, typically allowing the buyer to purchase goods or services on credit.

Variable Operating

Expenses associated with the operation of a business that vary with the level of production or sales, such as raw materials and direct labor costs.

Merchandise Inventory

The total of all goods held by a company that are ready for sale, typically used in retail and wholesale operations.