The contractor's bill of materials (BOM) includes 350 material items; therefore, you decide to use stratified sampling. You and the technical team thoroughly analyze all the material in the top 80% of cost. The proposed cost of the top 80% stratum is $30,000,000. You determine that the items in the top stratum should cost $28,500,000, for a difference of $1,500,000. Which statements are accurate? Select the three alternatives that apply. Each item above the 80% threshold will be valued at the should cost estimate resulting from your analysis. You will reduce the estimated cost of all 350 material items by 5%. The cost of each material item that is below the threshold will be reduced 5%. The decrement factor is 5%.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Based on the provided information the f... View the full answer