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Elena-2011 [213]
3 years ago
7

Sometimes a risk assessment report is prepared for a specific IT project at the request of the project manager, either because i

t is required by organizational policy or because it is good project management practice. _________________________
Business
1 answer:
fiasKO [112]3 years ago
3 0

Answer:

TRUE

Explanation:

The assertion is true that sometimes a risk assessment report is prepared for a specific IT project at the request of the project manager, either because it is required by organizational policy or because it is good project management practice.

A risk assessment report is the document that presents and summarizes the results of a risk assessment so that the information can be used to help make a decision about what to do next.

Preparing the report is a good project management practice because it shows the likelihood and impact of project risks.

It is also a matter of organizational policy that such reports need be prepared.

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Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. DU
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Answer:

Companywide income would increase by $6,000 if West Division is eliminated.

Explanation:

The amount by which the companywide income will increase or decrease if West Division is eliminated can be determined by comparing Revenue with avoidable cost.

Avoidable cost refers to the cost that will be eliminated or not incurred if a firm decides to change the course of a business.

In this question, avoidable cost is simply the cost or expenses that will be eliminated if West Division is eliminated.

Among all the expenses in the question, only Companywide facility-sustaining costs which is $78,000 cannot be eliminated if West Division is eliminated.

Therefore, avoidable cost can be calculated as follows:

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Since, Revenue = $300,000

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1. If revenue is greater than avoidable cost, we have a decrease in income. Therefore, the division should not be eliminated.

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Increase in income if West Division is eliminated = Avoidable cost – Revenue = $306,000 - $300,000 = $6,000

Therefore, companywide income would increase by $6,000 if West Division is eliminated

Since there would be an increase in income of $6,000, West Division should therefore be eliminated.

4 0
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