Using the _______ Method of Forecasting Project Time and Costs

question 60

Short Answer

Using the _______ method of forecasting project time and costs is the preferred method for situations involving strategic decision-making, projects with a high degree of uncertainty, and projects with an unstable scope.

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Definitions:

Variable Manufacturing Overhead

consists of production costs that fluctuate with the level of output, such as utilities or materials used in the maintenance of equipment.

Fixed Manufacturing Overhead

Indirect manufacturing costs that do not vary with production volume, such as salaries of managers, rent, and utility expenses.

Labor-Hours

A measure of the amount of work effort measured in hours, often used in tracking productivity and calculating labor costs.

Predetermined Overhead Rate

An estimated overhead rate used in costing to assign indirect costs to products or services based on an activity measure, recalculated for emphasis.