In Equation (8.2), the cost of raw materials, C RM , is multiplied by a factor of

Question:

In Equation (8.2), the cost of raw materials, C_RM, is multiplied by a factor of 1.23. The reason for this is that, in general, the estimated cost of raw materials is expected to be about 20% low and a correction factor of 1.23 is added to adjust for this. Do you agree with this explanation? If you do not, give another reason for using the factor of 1.23.
COMA 0.180 FCI +2.73COL + 1.23(CUT + CWT + CRM) (8.2)