A Negative Cost Variance Combined with a Negative Schedule Variance

question 64

Multiple Choice

A negative Cost Variance combined with a negative Schedule Variance is an indicator of

• A)Actual Cost running to plan.
• B)Risk of Work Packages running out of Slack.
• C)Budget over-runs.
• D)None of these choices are correct.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including both material and labor costs.

Inventory

The total amount of goods and materials held by a business for the purpose of resale, manufacturing, or repair.

Purchases Discount

A reduction in the price of goods that a buyer can avail of for making early payments to the supplier.

Yearly Savings Rate

The percentage of an individual's or household's income that is saved rather than spent over the course of a year.