APM PMQ Business Case and Investment Appraisal Exam Study Questions and Answers
4 views 0 purchase
Course
APM PMQ
Institution
APM PMQ
APM PMQ Business Case and Investment
Appraisal Exam Study Questions and
Answers
What is a fixed cost? - ANSWERA cost that remains the same over a given period of time irrespective
of output/production changes e.g. rent, rates, step fixed costs.
What is a variable cost? - ANSWERRefers to a cons...
What are indirect costs? - ANSWER✔✔A cost which cannot be attributed to a particular unit of output.
They are incurred by the business as a whole e.g. head office costs, marketing costs
Overheads.
What are discretionary costs? - ANSWER✔✔Costs that organizations have discretion in deciding whether
to fund them e.g.
Advertising, training, research
Do not change in line with production
Fixed and often direct
Can be increased or decreased as a result of 'management' decisions.
What are committed costs? - ANSWER✔✔Costs which will have to be paid irrespective of project go / no
go e.g. fixed costs such as vehicles, fixtures, and fittings. (promised/obliged to pay)
What are sunk costs? - ANSWER✔✔Costs that have already been incurred and cannot be recovered
What is an opportunity cost? - ANSWER✔✔The most desirable alternative given up as the result of a
decision (options).
Page 2/14
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Emillect. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
