Which of the Following Is True of Bottom-Up Estimates

question 101

Multiple Choice

Which of the following is true of bottom-up estimates?

• A)They are based on the actual cost of a previous, similar project. 
• B)They are also known as parametric estimating. 
• C)They are most accurate when they involve large, extensive work items. 
• D)They are time-intensive and expensive to develop.

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Definitions:

Direct Materials

Raw materials that can be directly identified and allocated to the production of specific goods or services.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of fully completed units for inventory valuation and cost analysis.

Direct Materials

Raw materials that can be directly associated with the production of a product.

FIFO Method

A method of inventory valuation where the first items purchased are the first to be sold or used.