When Evaluating Work Packages That Have a Negative Cost Variance

question 7

Multiple Choice

When evaluating work packages that have a negative cost variance, you should focus on taking corrective actions to reduce the costs of:

• A) activities that have a small cost estimate.
• B) activities that have a moderate cost estimate.
• C) activities that have a large cost estimate.
• D) all the activities in the project.

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Definitions:

FOB Shipping Point

A term indicating that the buyer assumes ownership and responsibility for goods at the seller's location, and pays for shipping costs.

FOB Destination

A shipping term indicating that the seller bears the cost and risk of transporting goods until they are delivered to the buyer's location.

Physical Inventory

The process of counting and verifying the actual stock in a business at a specific point in time.

Perpetual Inventory System

A digital system for inventory management that immediately documents any inventory sale or purchase using electronic point-of-sale systems along with enterprise asset management software.