A Recurring Problem with Establishing Accurate or Meaningful EVM Results

question 15

Multiple Choice

A recurring problem with establishing accurate or meaningful EVM results has to do with:

• A)The 0/100 rule.
• B)Over-reliance on the S-curve.
• C)The need to recognize the human factor.
• D)The need to satisfy stakeholders within budget and time parameters.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, indicating how much revenue is contributing to fixed costs and profit.

Incremental Annual Net Cash Inflows

The additional cash that flows into a business on an annual basis as a result of a specific action or investment.

Investment Project

A project or activity requiring capital expenditure with the expectation of achieving future profits or benefits.

Discount Factor

A multiplier used in discounted cash flow analysis to calculate the present value of future cash flows, reflecting the time value of money.