Once all payments have been received and made, the project "books," or accounting records, can be closed, and a financial analysis of the project can be made in which final actual costs are compared to
A) the FCAC calculations made.
B) the project baseline budget.
C) the actual value of the project.
D) amounts paid to suppliers.

Question

Quizplus · Accepted Answer

The financial analysis of the project compares the final actual costs to the project baseline budget, which was approved at the beginning of the project and is used as the benchmark for measuring performance. Comparing actual costs to the FCAC calculations made (A) may be useful for identifying variances, but the baseline budget is the primary point of comparison. Comparing actual costs to the actual value of the project (C) can be subjective and difficult to quantify. Amounts paid to suppliers (D) are just one part of the overall project cost, and the financial analysis should consider all relevant costs, including labor, materials, and overhead.

Once All Payments Have Been Received and Made, the Project