Some Projects Are Larger Than Major Divisions of Some Organizations

question 50

True/False

Some projects are larger than major divisions of some organizations, with the project manager responsible for a larger budget and managing more risk than most of the organizational leaders.

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Definitions:

Flexible Budget

A budget that modifies in response to fluctuations in activity levels or volume within an enterprise.

Manufacturing Costs

The total costs involved in making products which can include direct materials, direct labor, and manufacturing overhead.

Direct Material

These are the raw materials and components that are consumed directly in the manufacture of a product.

Variable Overhead

Costs that vary in total in direct proportion to changes in activity level or volume, such as utility costs or raw materials that fluctuate with production levels.