The First Step in Earned Value Management Is To

question 38

Multiple Choice

The first step in earned value management is to:

• A)Create the activity and resource usage schedules.
• B)Develop a time-phased budget that shows expenditures across the project's life.
• C)Total the actual costs of doing each task to arrive at the actual cost of work performed.
• D)Clearly define each activity that will be performed including its resource needs and budget.

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Definitions:

Supplies Account

An account that tracks the cost of supplies not yet used by a business.

Adjusting Entry

An accounting entry made into a ledger after the end of the accounting period to allocate income and expenditure to the period in which they actually occurred.

Prepaid Rent

An expense that is paid in advance and recorded as an asset on the balance sheet until it is realized as an expense over time.

Rent Expense

The cost incurred from leasing a property or equipment for business operations, typically recognized in the income statement.