When Making Contingency Estimates, the Contractor Should

question 102

Multiple Choice

When making contingency estimates, the contractor should

• A) estimate the amount to mitigate high impact and probable issues.
• B) include an amount for each issue that has high impact.
• C) include a small amount for each possible issue.
• D) heavily pad the estimates to include every issue.

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Definitions:

Operating Activities

Business activities directly related to the production and delivery of goods and services, affecting the firm's cash flow.

Financing Activities

Transactions related to a company's funding, including issuing debt, repaying loans, or dividend payments.

Issuance

The process of making securities available for sale by a company, typically involving stocks or bonds.

Capital Stock

The total amount of shares a company is authorized to issue, representing the owners' equity in the corporation.