The Cost Section of the Proposal Is to Convince the Customer

question 45

Multiple Choice

The cost section of the proposal is to convince the customer that the contractor

• A) is charging a price for the proposed project that is reasonable and realistic.
• B) understands the need or problem and can provide the least risky and most beneficial solution.
• C) can do the proposed work and achieve the intended results.
• D) has a price that is less expensive than the other bidders' prices.

---

Definitions:

Activity Cost Pools

A grouping of all costs associated with a specific activity, used in activity-based costing to more accurately allocate overhead costs.

Activity Rates

Rates used in Activity-Based Costing to assign overhead costs to products or services, based on specific activities that drive those costs.

Activity-Based Costing

An accounting method that assigns overhead and indirect costs to related products and services based on the activities that drive those costs.

Product I9

A reference to a specific product identified by the code I9, indicating a unique item or model in a company's product line.