The Process of Deciding How to Approach,plan and Execute Risk

question 30

True/False

The process of deciding how to approach,plan and execute risk management activities for a project is known as Project Risk Absorption Methodology (PRAM).

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Definitions:

Freight-In

Freight-in refers to the shipping cost associated with getting raw materials or inventory to a company, which is added to the cost of goods.

Cost of Goods Sold

The expenses directly related to the manufacturing of products a company sells, which includes the cost of materials and labor.

Gross Profit

The difference between revenue and the cost of goods sold, indicating how efficiently a company produces goods.

Operating Expenses

Costs associated with a company's main operational activities, excluding direct materials, direct labor, and other direct costs, such as rent, utilities, and salaries.