The Operational Principle Behind Factoring a Project into Phases and Tasks

question 71

Multiple Choice

The operational principle behind factoring a project into phases and tasks is

• A) top-down design with successive refinement.
• B) to schedule all activities according to CPM methodology.
• C) that each specific task or phase should provide a deliverable at its completion.
• D) to use analytic flowcharts to factor a project into modules.

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Definitions:

Job-Order Costing System

A cost accounting system that accumulates costs incurred according to each job or project, suitable for industries where goods or services are produced on a custom basis.

Predetermined Overhead Rate

is calculated before a period begins and is used to allocate manufacturing overhead costs to products based on a chosen activity basis, such as labor hours or machine hours.

Variable Manufacturing Overhead

Indirect production costs that vary with the level of output, such as utilities or indirect labor.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating manufacturing overhead to products.