Which of the following is NOT true regarding bottom-up budgeting?
A. The method tends to be inaccurate in the detailed tasks.
B. The WBS is used to identify the elemental tasks.
C. It is rarely used.
D. It is a good managerial training technique.
A task is expected to take 20 hours of labor at $25 per hour. The required material cost is $500, and the organization charges 30% of direct labor for overhead. The total task cost is:
There is a 30 percent chance that a new product development project will result in sales of $500,000 and a 70 percent chance that the project will result in sales of $100,000. What is the expected value of this project?
Which of the following is most closely associated with FMEA?
A. Risk priority number
B. Game theory
C. Expected value
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