Which of the Following Is True About Managing Cash Flow

question 50

Multiple Choice

Which of the following is true about managing cash flow?

• A) The project manager prefers to keep the company's money working in other investments until the last moment before transferring it to the project account.
• B) If estimates are rarely exceeded, the estimating method need not be reviewed.
• C) Occurrences that increase costs above the original estimates are uncommon in projects.
• D) Instead of underestimating each cost, money is budgeted for dealing with planned but statistically unpredictable cost increases.
• E) It is not possible to predict which activities cost more than expected but it is reasonable to assume that some of them will be.

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Definitions:

Utility Function

A mathematical representation that ranks preferences or satisfaction levels consumers derive from different bundles of goods.

Perfect Substitutes

Products or goods that can replace each other perfectly with no loss of utility to the consumer.

Utility Function

A mathematical representation of a consumer's preference ranking over a set of goods or services, indicating satisfaction levels.

Units Of X

A generic term for measuring quantities of a variable or unspecified item, labeled as 'X'.