Your Supervisor at a Consulting Firm Asks You to Allocate

question 87

Multiple Choice

Your supervisor at a consulting firm asks you to allocate the time you actually spent on jobs now in danger of exceeding their cost estimates to other jobs less likely to overrun cost estimates.Which of the following statements is true?

• A)This practice misleads managers who rely on accurate cost information for pricing,cost control,and other decisions.
• B)This practice cheats people who may be paying for a job on a cost-plus-fee basis,where the job has cost less than the producer claims.
• C)This practice avoids the appearance of cost overruns on some jobs and is unethical.
• D)All of the answers are correct.

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Definitions:

Long-Term Corporate Bonds

Bonds issued by corporations with maturities longer than ten years, offering fixed interest payments.

Eurobonds

Bonds issued in a currency other than the currency of the country or market in which it is issued, often used by companies to raise capital in foreign markets.

Yankee Bonds

Bonds issued by foreign entities in the U.S. market, denominated in U.S. dollars, to raise capital from American investors.

Samurai Bonds

Bonds issued in Japan by foreign entities, denominated in Japanese yen.