If the total unsettled costs are less than $2 million, how are these costs classified?

When total unsettled costs are less than $2 million, they are classified as relatively insignificant costs. This classification helps organizations manage their financial reporting and decision-making processes more effectively. In many contracting and financial contexts, a threshold of $2 million is established to differentiate between minor and significant financial implications of unsettled costs. Costs below this level are often deemed manageable and not likely to impact the overall financial health of the project, allowing organizations to focus their resources and attention on more significant issues that could affect their operations or profitability.

By categorizing these costs as relatively insignificant, stakeholders can streamline their attention to larger financial matters without getting bogged down by smaller, less impactful amounts. This classifies the unsettled costs in a way that aligns with common financial practices and expectations within contracting and project management sectors.