When Asked to Provide an Estimate of an Irrigation System,Pete

question 8

Multiple Choice

When asked to provide an estimate of an irrigation system,Pete looked from one end of the field to the other,licked a finger and held it in the air,squinted into the sun and said $25,000,give or take 30%.The technique employed for cost estimation is:

• A)Parametric.
• B)Comparative.
• C)Definitive.
• D)Ballpark.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and overhead expenses.

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a number of accounting periods.

Net Sales

The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts.

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.