According to Frame (1994),which of the Following Is Not a Trap

question 28

Multiple Choice

According to Frame (1994) ,which of the following is not a trap that inexperienced cost estimators fall into?

• A) They are too optimistic about what is needed to do the job.
• B) They tend to leave components out that should be estimated.
• C) They do not use a consistent estimation methodology.
• D) They do not rely on historical project costs.

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Definitions:

Cost of Goods Sold

Direct financial responsibilities stemming from the fabrication of goods a company sells, incorporating materials and labor.

Inventory

Items held by a company awaiting sale or use in production, including raw materials, work-in-progress, and finished goods.

Times Interest Earned

A financial metric that measures a company's ability to meet its debt obligations by comparing its earnings before interest and taxes (EBIT) to its annual interest expense.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expense.