When a Supporting Document Functions as a Project Control Device

question 37

Multiple Choice

When a supporting document functions as a project control device throughout the project's development,it is NOT prepared in advance:

• A)Due to time constraints.
• B)As it is a dynamic document.
• C)Since micromanaging can occur.
• D)Because control devices are left to project completion.

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.

Operating Activities

The day-to-day functions of a business related to producing and selling its products or services, which are reflected in the cash flow statement.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, reflected in the cash flows of a business.

Direct Method

An accounting method used to allocate service department costs directly to producing departments without considering services rendered between service departments.