Contracting Exam 5 Flashcards Preview

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Flashcards in Contracting Exam 5 Deck (16):
1

_______ numbers measure the percentage of price change over time

Price Index

2

Define range

Distance between minimum and maximum

The tighter the range the greater the predictability

3

What is the Mean?

Arithmetic Average

4

What is the Mode?

number that appears the most often

5

What is the Median?

Middle value after ranking

6

The quantity as which total revenue equals total cost is _______?

Break Even

7

Left skewed means

(tail to the left)
mean < median

8

Right skewed means

(tail to the right)
mean > median

9

What is a simple price index?

Simple index numbers calculate price changes for a single item over time

10

Bi modal means

more than one peak

MORE ANALYSIS NEEDED!

11

What is an aggregate price index?

Aggregate index numbers calculate price changes for a group of related items over time

12

What is a semi-variable cost?

includes a fixed and variable element

13

What is a variable cost?

costs which increase or decrease with respect to each change in the activity level

14

What is a fixed cost?

Fixed costs remain constant, even as activity level changes
Examples: property insurance, management salaries, rent

15

What are the three types of contract financing?

which is most preferred?

Progress payments

Performance Based Payments****

Advanced Payments (do not exceed 15%)

16

18. When a contractors variable cost per unit (Vu) is greater than their revenue cost per unit that is an __________ pricing strategy

irrational