_________ Involves System Developers Writing a Business Case to Justify

question 84

Multiple Choice

_________ involves system developers writing a business case to justify funding one or more specific applications or projects.

• A) Breakeven analysis
• B) The business case approach
• C) NPV
• D) ROI

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Definitions:

Materials Quantity Variance

The difference between the actual and standard quantity of materials used times the standard price.

Materials Price Variance

The difference between the actual price and standard price of raw materials times the actual quantity used or purchased.

Direct Materials Price Variance

The difference between the actual cost and standard cost of materials used in production.

Direct Materials Quantity Variance

The difference between the actual quantity of direct materials used in production and the standard quantity expected, multiplied by the standard cost per unit.