Buy-Out.

Buy-Out.

• A. Cost Report
• B. Labor Cost Accounting
• C. Cost Management
• D. Buy-Out

Answer: (D)

In cost controls for projects, the buy-out is the step where you finalize all procurement, turning bids into fixed-price subcontracts and material purchase orders. This locks in costs and reduces the risk of price increases or scope changes once work begins, giving you a known baseline to manage from. It’s different from cost reporting (which tracks what’s spent), labor cost accounting (which focuses on labor costs), or broad cost management (which covers overall budgeting and control). Finalizing the supplier and subcontractor commitments to fixed prices is exactly what buy-out refers to, so it’s the term that best fits this concept.

In cost controls for projects, the buy-out is the step where you finalize all procurement, turning bids into fixed-price subcontracts and material purchase orders. This locks in costs and reduces the risk of price increases or scope changes once work begins, giving you a known baseline to manage from. It’s different from cost reporting (which tracks what’s spent), labor cost accounting (which focuses on labor costs), or broad cost management (which covers overall budgeting and control). Finalizing the supplier and subcontractor commitments to fixed prices is exactly what buy-out refers to, so it’s the term that best fits this concept.