Calculate the Forecasted Cost at Completion If the Total Budgeted

question 96

Multiple Choice

Calculate the forecasted cost at completion if the total budgeted cost is $15,000, the cumulative actual cost is $10,000, and the cumulative earned value is $12,000.

• A) FCAC = $7,000
• B) FCAC = $17,000
• C) FCAC = $13,000
• D) FCAC = $37,000

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Definitions:

General Ledger

A comprehensive accounting record of all transactions that have taken place over the life of an organization, serving as the primary data source for the financial statements.

Labor Costs

Expenses related to the compensation of employees, including wages, salaries, benefits, and taxes associated with labor.

Time Tickets

The form on which the amount of time spent by each employee and the labor cost incurred for each individual job, or for factory overhead, are recorded.

Direct Labor Costs

The total cost of wages for employees who work directly on manufacturing a product or providing a service.