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:

Net Cash

The amount of cash that remains with a company after all its current liabilities are accounted for, indicating the company's liquidity position.

Equity

Ownership interest in a company, often represented by stocks, giving shareholders a claim on assets and earnings.

Credit Purchases

Transactions where goods, services, or assets are bought with the promise of future payment, often involving interest charges over time.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.