Blank quiz 13

What is cost management?

• Cost management refers to the marketing strategy of a product.

• Cost management is the process of increasing project expenses.

• Cost management is solely about reducing costs without planning.

• Cost management is the process of planning and controlling the budget of a project.

Why is it important to manage costs?

• It is important to manage costs to maintain profitability and ensure financial stability.

• To avoid making informed business decisions.

• To increase expenses and reduce savings.

• To complicate financial reporting processes.

Can you name a way to reduce costs?

• Increase employee salaries

• Invest in luxury office spaces

• Implement energy efficiency measures.

• Expand product lines

What is a budget?

• A budget is a type of investment strategy.

• A budget is a document for tracking employee performance.

• A budget is a list of all the products a company sells.

• A budget is a financial plan for managing income and expenses.

How does tracking expenses help in cost management?

• Tracking expenses is only useful for personal finance.

• Tracking expenses helps in cost management by providing insights into spending habits and identifying areas for cost reduction.

• Tracking expenses eliminates the need for budgeting.

• Tracking expenses increases overall spending.

What is the difference between fixed and variable costs?

• Variable costs remain constant regardless of production levels.

• Fixed costs are always higher than variable costs.

• Fixed costs can be adjusted based on market demand.

• Fixed costs do not change with production levels, while variable costs do.

Why should businesses keep their costs low?

• To limit market reach and customer base.

• To increase profit margins and remain competitive.

• To increase operational complexity and inefficiency.

• To reduce employee satisfaction and morale.

What is a cost-benefit analysis?

• A cost-benefit analysis is a method to determine the emotional impact of a decision.

• A cost-benefit analysis focuses solely on the qualitative aspects of a project.

• A cost-benefit analysis is used to assess the environmental impact of a project.

• A cost-benefit analysis is a method used to evaluate the total expected costs versus the total expected benefits of a project or decision.

How can technology help in managing costs?

• Technology complicates supply chain logistics.

• Technology has no impact on cost management.

• Technology increases costs through manual processes.

• Technology helps manage costs through automation, efficiency improvements, data analytics, remote work, and optimized supply chain management.

What happens if costs exceed the budget?

• Costs exceeding the budget guarantee additional funding will be provided.

• Costs exceeding the budget always result in project cancellation.

• There are no consequences if costs exceed the budget.

• Costs exceeding the budget can lead to financial adjustments and potential project delays.