Lesson 07 - Budget Analysis And Cost Estimating

Question 1

PRO-FORMA.

Answer 1

The financial analysis of a building project, which involves cost and return on investment.

Question 2

COST OF MONEY

Answer 2

Principal and interest payments, or “Debt Service”

Question 3

DEPRECIATION

Answer 3

is based on the idea that a building loses value as it ages, at least from a tax standpoint

Question 4

CASH FLOW

Answer 4

The amount of real cash loss (carrying expenditure) or positive cash earnings

Question 5

GENERAL OBLIGATION BONDS

Answer 5

are used to finance the construction of facilities that do not collect revenue, such as schools, roads, parks, etc. The principal and interest on such bonds are paid from tax revenues.

Question 6

REVENUE BONDS

Answer 6

are used to finance revenue-producing facilities, such as toll bridges, water treatment facilities, and the fees collected by such facilities are used to pay back the bonds.

Question 7

BUILDING CLASSIFICATION CODE

Answer 7

Establishes a convenient system to identify, classify, and store information on various projects.