Compare and Contrast Top-Down and Bottom-Up Estimating? Why Would You

question 79

Essay

Compare and contrast top-down and bottom-up estimating? Why would you choose one method over the other?

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity, such as raw materials and direct labor costs.

Variable Cost

Spending that rises and falls according to how much is produced or sold, including costs for labor and materials.

Fixed Costs

Expenses that do not vary with the volume of production or sales, such as rent, salaries, and insurance.

Activity Changes

Fluctuations or variations in the operations of a business that can affect its financial performance and necessitate managerial adjustments.