Phase Estimating Is Used When a Project Cannot Be Rigorously

question 3

True/False

Phase estimating is used when a project cannot be rigorously defined because of the uncertainty of design or the final product.

---

Definitions:

Units

In the context of inventory or production, refers to the individual items or components that can be counted or measured.

Break-Even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain, and the business is breaking even.

Contribution Margin

The contribution margin represents the portion of sales revenue that is not consumed by variable costs and can contribute to covering fixed costs and generating profit.

Variable Cost

Costs that change in proportion to the level of production or sales activity.