A Pinecrest punch list has 15 trade items estimated at $125 each. What completion cost should be forecast?
Correct Answer
B) $1,875
Punch-list completion forecast equals open item count multiplied by estimated cost per item.
Why This Is the Correct Answer
Punch-list completion forecast equals open item count multiplied by estimated cost per item.
Why the Other Options Are Wrong
Option A: $140
$140 is below the supported result for punch-list completion forecast; it likely omits allowance, conversion, coverage, or final round-up.
Option C: $1,750
$1,750 is below the supported result for punch-list completion forecast; it likely omits allowance, conversion, coverage, or final round-up.
Option D: $2,375
$2,375 is above the supported result for punch-list completion forecast; it likely double-counts allowance, uses the wrong unit, or rounds too early.
Memory Technique
Measure to forecast, adjust for open, then let Manager Forecasts set the finish line.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Builder's Guide to Accounting, Job cost forecasts and completion-cost estimates; verify the trade cost, production, or field-control rule before answering.
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