A custom door package costs $58,000 and requires a 40% deposit. What cash requirement should be forecast?
Correct Answer
B) $23,200
Multiply package cost by deposit percentage.
Why This Is the Correct Answer
Multiply package cost by deposit percentage.
Why the Other Options Are Wrong
Option A: $17,400
$17,400 is below the supported result for procurement deposit; it likely uses the wrong base, period, or account bucket.
Option C: $29,000
$29,000 is above the supported result for procurement deposit; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $34,800
$34,800 is above the supported result for procurement deposit; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Plans Early money test: bucket before math for procurement deposit.
Reference Hint
Open-book path: tab Principles and Practices of Commercial Construction, 11th Edition, 2024 to Procurement planning; long-lead deposit forecast; check the math, FL authority, inspection point, or field record before choosing.
More Contract Admin Questions
An owner assumes the architect's site visit means the architect is supervising the contractor's crews. What AIA A201 concept corrects that assumption?
The GC and owner disagree about what a specification requires. Under AIA A201, who commonly provides interpretations and decisions during administration?
The architect observes work that does not conform to the Contract Documents. Which AIA A201 architect authority may apply?
A subcontractor says the prime contract general conditions do not apply to its work. Under AIA A401, what should the GC point to?
An addendum adds 18 access panels at $315 each installed. What amount should be added to the bid?
A slab-on-grade is 96 ft by 54 ft and 5 in thick. Including 7% waste, how many cubic yards of concrete should be carried?
An addendum adds 14 doors at $685 each installed. What additive amount should be added to the bid for those doors?
A CMU wall area is 2,240 sf after openings. If one block covers 1.125 sf and 4% waste is included, how many blocks should be estimated?
An office ceiling takeoff is 11,250 sf. Ceiling tile waste is 6%. How many square feet of tile should be carried?
A framing crew averages 310 lf of partition layout and track per day. The bid includes 2,170 lf. At $1,540 per crew day, what labor amount should be carried?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
The recorded notice has an incorrect legal description. What process should be reviewed?
Next Question
A Florida GC sees that one specification section implies a fire-rated assembly while the drawing note is less explicit. Under AIA A201, how should the project team treat the documents?