In many projects, large dollar amounts are expended for materials or services (subcontractors, consultants) that are used over a period of time longer than one cost reporting period. What is the reason for this?
1) The materials or services are required for ongoing project activities.
2) The materials or services are not readily available for immediate use.
3) The materials or services are being stockpiled for future use.
4) The materials or services are being used in multiple projects simultaneously.