Discuss How the Accuracy of Cost Estimates Becomes More Precise

question 40

Essay

Discuss how the accuracy of cost estimates becomes more precise during a project.

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Definitions:

Consumption

The use of goods and services by households that leads to a decrease in their availability.

Disposable Income

Available financial merits for households towards spending and saving following income tax subtractions.

MPC

Marginal Propensity to Consume, which is the proportion of any additional income that is spent on consumption rather than being saved.

Savings

Money set aside typically in financial instruments, representing deferred consumption or for future use.