In Considering the Main Components of a Construction Budget, Which

question 24

Multiple Choice

In considering the main components of a construction budget, which costs would be expected to constitute the largest portion of a development project's expense?

• A) Land costs
• B) Hard construction costs
• C) Soft construction costs
• D) Marketing costs

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Definitions:

Contribution Format

is an income statement format that separates fixed and variable costs, highlighting the contribution margin.

Net Operating Income

The profit generated from a company's operational activities after subtracting operating expenses from revenue.

Target Profit

The amount of net income that a company aims to achieve within a specific time frame.

Margin of Safety Percentage

The ratio that shows how much sales can decline before a business reaches its break-even point, expressed as a percentage.