Question

You are estimating the contractor’s material handling cost as a factor of the material cost. After examining 6 previous contracts you have the percentage (factor) for each contract:

2.5% 6.2% 3.2% 12.9% 7.0% 15.3%

All of the following would be reasonable actions except for:
Consider if there is an additional cost driver
Determine if all 6 contracts were for similar work
Reconsider if material cost is a good indicator of material handling cost
Throw out the high and low values and average the remaining factors

Answers

TOny
Throw out the high and low values and average the remaining factors
rITA
You are estimating the contractor’s material handling cost as a factor of the material cost. After examining 6 previous contracts you have the percentage (factor) for each contract:

2.5% 6.2% 3.2% 12.9% 7.0% 15.3%

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