The Process of Subtotaling Costs by Category or Activity Is

question 5

Multiple Choice

The process of subtotaling costs by category or activity is called _____.

• A) parametric estimating
• B) reserve analysis
• C) alignment process
• D) cost aggregation
• E) reconciliation

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Definitions:

Time Value Of Money

A financial principle stating the value of money is time-dependent, where a dollar today is worth more than a dollar in the future due to its potential earning capacity.

Discount Rate

The rate of interest that is employed in discounted cash flow calculations to assess the present-day worth of cash flows that are expected to occur in the future.

Overhaul Costs

Expenses incurred for significant repairs or major restoration of equipment, machinery, or buildings which extend their life but do not qualify as capital expenses.

Incremental Cost Approach

An analysis technique that focuses on the additional costs and benefits associated with a particular decision or project.