The Order of Magnitude Cost Estimate Is Used When

question 98

Multiple Choice

The order of magnitude cost estimate is used when:

• A)Ballpark estimates are not considered accurate enough.
• B)Historical data are readily available.
• C)Information or time is scarce.
• D)Parametric estimation has already been performed.

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Definitions:

Faithful Representation

A qualitative characteristic of financial information that insists on the data being complete, neutral, and free from material error.

Conceptual Framework

A set of coherent principles and ideas that guide the development, preparation, and interpretation of financial reports, ensuring consistency and comparability.

Financial Statements

Financial statements are comprehensive reports created to highlight an organization's financial performance, financial position, and cash flows over a certain period, commonly including the balance sheet, income statement, and cash flow statement.