Which of the Following Is a Major Weakness of the Engineering

question 38

Multiple Choice

Which of the following is a major weakness of the engineering method of cost estimation?

• A)The method is not particularly useful when the physical relation between inputs and outputs is indirect.
• B)The method is subjective.
• C)The method requires that several relatively strict assumptions be satisfied.
• D)The method is based on studies of what future costs should be rather than what past costs have been.

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Definitions:

Management Team

A group of individuals at the top level of an organization who are responsible for its overall direction and strategy.

Investors

Individuals or institutions that allocate capital with the expectation of receiving financial returns, typically through investments in securities, real estate, or other assets.

Going Public

The process by which a privately held company offers shares to the public in a new stock issuance, making it a publicly traded and owned entity.

Private Placements

A method of raising capital through the sale of securities to a relatively small number of select investors as opposed to a public offering.