To carry out an optimization analysis,________.
A) different types of costs are measured in different units
B) only direct costs incurred in a project are to be estimated
C) only indirect costs incurred in a project are to be estimated
D) all costs are required to be converted to the same unit of measurement

Question

Quizplus · Accepted Answer

To carry out an optimization analysis, all costs should be converted to the same unit of measurement in order to make them comparable and to accurately measure the impact of different strategies on the overall cost. This process is often referred to as cost normalization.

To Carry Out an Optimization Analysis,________