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Question 1 
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. 

Question 2  
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: 
A. $500 
B. $1,150 
C. $1,250 
D. $1,500 

Question 3
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? 
A. $220,000 
B. $240,000 
C. $300,000 
D. $320,000 

Question 4  
Which of the following is most closely associated with FMEA? 
A. Risk priority number 
B. Game theory 
C. Expected value 
D. Simulation 

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