Construction Management Practice Exam 2025 – Complete Study Guide

The cash requirements curve is the most fitting forecasting model for estimating accounts payable for a general contractor because it directly reflects the timing and amount of cash needed for various expenses, including those associated with accounts payable. This model helps identify when payments are due, allowing contractors to plan their cash flow accordingly. By tracking cash outflows, including payments to suppliers and subcontractors, the contractor can better manage when and how much cash will need to be disbursed.

In contrast, other models such as the cost curve, production curve, and cash income curve focus on different aspects of financial management. The cost curve primarily illustrates the relationship between variable and fixed costs and the overall budget but does not specifically inform about cash outflows. The production curve relates to the output of work over time, while the cash income curve deals with revenue inflows, neither of which directly assists in calculating accounts payable. Thus, the cash requirements curve stands out as the most relevant tool for this specific purpose.