The Preferred Method for Situations Involving Strategic Decision Making, Projects

question 40

Short Answer

The preferred method for situations involving strategic decision making, projects with a high degree of uncertainty, and projects with an unstable scope is the ___________ approach to estimating project time and costs.

Determine net operating income using the contribution approach.

Analyze and calculate average fixed costs per unit at a defined activity level.

Calculate gross margin and distinguish it from contribution margin.

Apply the concept of relevant range in cost analysis.

---

Definitions:

Differential Association Theory

A criminological theory suggesting that individuals learn deviant behavior through their interactions with others.

Deviant Lifestyles

Behaviors or ways of living that deviate from societal norms or expectations, often carrying a negative connotation.

Assignee

An individual or entity to which rights or interests are transferred by another.

Assignment

The transfer of one’s rights or obligations under a contract to another party.