Capital Budgeting Techniques Provide Precise Estimates on an IT Projects

question 10

True/False

Capital budgeting techniques provide precise estimates on an IT projects costs and benefits.

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Definitions:

Direct Materials

Raw materials that can be directly associated with the production of specific goods or services.

Standard Cost Card

A document that lists the expected costs of materials, labor, and overhead associated with producing a particular product or performing a service.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity allowed, multiplied by the standard cost per unit.

Direct Labor Rate

The rate paid for the labor time per unit of work or hour worked by an employee directly involved in production.