Which of the Following Is a Good Condition for Top-Down

question 55

Multiple Choice

Which of the following is a good condition for top-down estimating?

• A) Cost and time important
• B) Fixed price contract
• C) Customer wants details
• D) Internal, small project
• E) Large scale project involving several subcontractors

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Definitions:

Breakeven Point

The level of production or number of sales at which costs equal revenues, resulting in neither profit nor loss.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Luxury Goods

Products or services that are not essential but are considered desirable and are associated with high quality and high price.

Price Inelastic

Describes a situation where the demand for a product does not significantly change with a change in the product's price.