Which of the Following Is a Good Condition for Top-Down

question 55

Multiple Choice

Which of the following is a good condition for top-down estimating?

• A) Cost and time important
• B) Fixed price contract
• C) Customer wants details
• D) Internal, small project
• E) Large scale project involving several subcontractors

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Definitions:

Coordinating Orders

The process of ensuring that orders from different customers or for various products are managed in a way that optimizes resources and delivery times.

Fixed Ordering Cost

The constant expense associated with placing an order, regardless of the order size, including administrative expenses and fees.

Material Cost

The expense incurred in acquiring the raw materials needed to produce a good, often a significant portion of total production costs.

Holding Cost

The expenses associated with storing unsold goods, including storage, insurance, and deteriorating costs.