The ____ the Correlation in Project Returns Is Over Time

question 25

Multiple Choice

The ____ the correlation in project returns is over time, the ____ will be the project portfolio risk as measured by the portfolio variance.

• A) lower; lower
• B) higher; lower
• C) lower; higher
• D) none of the above

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Definitions:

Direct Method

A method of allocating service department costs directly to production departments without considering inter-service department flows.

Accounts Receivable

Funds that clients or customers owe to a company for products or services provided but for which payment has not yet been received.

Accounts Payable

Money owed by a company to its suppliers or vendors for goods and services received, representing a liability on the balance sheet.

Direct Method

A financial accounting method that allocates service department costs directly to production departments without considering services rendered between service departments.