The Order of Magnitude Cost Estimate Is Used When

question 98

Multiple Choice

The order of magnitude cost estimate is used when:

• A)Ballpark estimates are not considered accurate enough.
• B)Historical data are readily available.
• C)Information or time is scarce.
• D)Parametric estimation has already been performed.

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Definitions:

Labor

A term referring to the human effort, both physical and mental, used in the production of goods and services.

Marginal Product

The extra output or benefit produced by using one more unit of a given input, such as labor or capital.

Labor

The effort by humans to produce goods or services in the economy. It is often considered one of the key factors of production alongside land and capital.

Capital

Refers to financial resources, assets, or funds a company or individual possesses for pursuing investment opportunities or operational activities.