In Classifying the Kinds of Projects an Organization Has in Its

question 10

Short Answer

In classifying the kinds of projects an organization has in its portfolio, projects that directly support the organization's long-term mission are ________ projects.

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Definitions:

Variable Expenses

Costs that vary in direct proportion to changes in an activity level or volume, such as sales commissions.

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, such as rent.

Contribution Margin

The amount by which the sales price of a product exceeds its variable costs, contributing to covering fixed costs and generating profit.

Fixed Costs

Expenses that do not change with the level of production or sales activity, such as rent, salaries, and insurance.