The Percent Complete Index That Looks at Percent Complete in Terms

question 47

Multiple Choice

The percent complete index that looks at percent complete in terms of budgeted amounts is calculated by which of the following?

• A)EV/BAC
• B)(EV-PV)/BAC
• C)AC/EAC
• D)(EV-AC)/BAC
• E)(EV-PV)/EAC

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Definitions:

Materials

Items or supplies used in the production of goods, considered part of the direct costs in manufacturing.

FIFO Method

"First In, First Out," an inventory valuation method that assumes goods are sold in the order they are acquired, impacting the cost of goods sold and inventory value.

Equivalent Units

A term used in process costing to measure the amount of work done on incomplete products, converted into an equivalent number of fully completed units.

Materials

Substances or components required in the production of goods or in the provision of services.