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 Margin

The difference between the sales revenue of a company and its variable costs.

Fixed Budget

A budget that remains unchanged and is based on a fixed level of activity, regardless of actual levels of output, sales, or revenue throughout the budget period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more accurate financial planning and analysis.

Contribution Margin

The difference between sales revenue and variable costs, showing how much revenue contributes to covering fixed costs.