It Is Proper to Include an Estimate for Developer Profit

question 15

True/False

It is proper to include an estimate for developer profit as a cost of development when projecting net cash flows and evaluating whether a required rate of return will be met.

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Definitions:

Political Behavior

Actions and strategies used by individuals or groups within an organization to gain power, influence decisions, and achieve specific goals.

Referent Power

A form of influence that stems from the leader’s ability to be admired and respected, thus inspiring others to follow.

Expert Power

The influence and authority one has due to one's skills, experience, or knowledge in a particular area.

Coercive Power

The ability of a person to force others to comply with demands or obey orders through the threat of punishment or negative consequences.