All of the Following Are True of Closing Except for

question 68

Multiple Choice

All of the following are true of closing except for

• A) Consists of obtaining all necessary shareholder, regulatory, and third party consents
• B) Requires significant upfront planning
• C) Is rarely subject to last minute disagreements
• D) Involves the final review and signing of such documents as the agreement of purchase and sale, loan agreements (if borrowing is involved), security agreements, etc.
• E) Fulfillment of the so-called closing conditions

Acknowledge the need to review the estimating method when estimates are rarely exceeded.

Understand that an activity can have costs from multiple vendors.

Grasp the differences in estimating methods across project phases.

Learn the concept of actual cost versus detailed cost estimates.

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Definitions:

Target Costing

A pricing strategy in which the selling price of a product is determined first, and then the manufacturing cost is managed to meet that selling price.

Mark-up

The amount added to the cost price of goods to cover overhead and profit.

Eliminate

The process of removing or getting rid of something.

Contribution Margin

The amount remaining from sales revenue after all variable costs have been deducted, indicating how much revenue is contributing to covering fixed costs and generating profit.