Which of the Following Is Not an Alternative Method of Purchasing

question 2

Multiple Choice

Which of the following is not an alternative method of purchasing construction services presented in the textbook?

• A) Conventional Method
• B) Cost Plus Discretionary Expenses
• C) Design and Build, Agreed Price Method
• D) Design and Build, Cost-Reimbursable Method
• E) The Owner as a Contractor

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Definitions:

Net Operating Income

The total operating profit of a company after all operating expenses, excluding taxes and interest expenses, have been deducted from total revenue.

First Year

Refers to the initial period or the first 12 months of a specific timeframe, often used in the context of financial or operational performance.

Absorption Costing

A method of product costing that includes all manufacturing costs, both fixed and variable, in the cost of a product.

Contribution Margin

The amount remaining after variable costs have been subtracted from revenue, which contributes to covering fixed costs and generating profit.