The Major Purpose of Cost Estimation Is to Break Down

question 113

Multiple Choice

The major purpose of cost estimation is to break down total cost into which of the following components?

• A)short-run and long-run components.
• B)fixed and variable components.
• C)controllable and noncontrollable components.
• D)direct and indirect components.

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Definitions:

Transport

The action or process of moving goods or people from one place to another.

Protective Suits

Specialized clothing designed to protect the wearer from physical harm, hazardous materials, or environmental conditions.

Shipment Contract

A legal agreement specifying that the seller will arrange for goods' transportation to a specific destination, but the risk of loss passes to the buyer once the carrier takes possession.

Destination Contract

A contract specifying that the seller is responsible for delivering goods to a particular destination, with the risk of loss transferring upon delivery.