You Have Been Asked to Estimate the Costs for a Project

question 27

Multiple Choice

You have been asked to estimate the costs for a project to build an industrial power plant.Based on historical data,the steam turbine accounts for 30 percent of the total costs for the plant.If the steam turbine costs $300,000,the expected top-down estimated cost for this project would be __________.

• A)$1,000,000
• B)$100,000
• C)$10,000
• D)$900,000

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Definitions:

Operating Activities

The recurring operations of a business that pertain to providing its main goods or services and generate revenue.

Net Cash

The actual cash that is available with a company after all deductions, including expenses and liabilities, have been made.

Operating Activities

Business activities directly related to the production and delivery of goods and services.

Operating Activities

Activities related to the primary operations of a company, such as purchasing raw materials, producing goods, and selling products or services.