It Is More Difficult to Estimate Fixed and Variable Cost

question 45

True/False

It is more difficult to estimate fixed and variable cost per unit for a project during planning than once the project is underway.This is because,once a project is operational,the firm has access to clearly reported and separated actual costs that the project incurs.

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Definitions:

Participants

Individuals or entities that take part in an activity, process, or event, often contributing to its outcome.

Creditors

Individuals or institutions that lend money or extend credit and are owed repayment.

Preferred Share

Equity shares in a corporation, which provide dividends to its holders before dividends are distributed to common shareholders, and typically have no or restricted voting rights.

Specific Dividend

A dividend paid out in forms other than cash, such as stocks or other assets, to shareholders.