Identify Three Major Advantages and Disadvantages of Using Functional Elements

question 31

Essay

Identify three major advantages and disadvantages of using functional elements of the parent organization as the administrative home for a project.Assume that the structure is appropriate for the project being undertaken.

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Definitions:

Average Cost

A method of inventory valuation that calculates the cost of goods sold and ending inventory based on the weighted average cost of all goods available for sale.

First-In, First-Out

An inventory valuation method where the cost of the earliest goods purchased are the first to be recognized in determining cost of goods sold.

Last-In, First-Out

An inventory valuation method where the costs of the most recently acquired items are the first to be expensed.

LIFO

An inventory cost methodology assuming the most recently added items to the inventory are sold first, short for "Last-In, First-Out."