In Year 1 a Contractor Agrees to Build a Building

question 108

Multiple Choice

In year 1 a contractor agrees to build a building for $2,500,000 by the end of year 2.The builder's cost is estimated to be $1,800,000.The actual costs year 1 are $900,000 and year 2's actual costs are $1,100,000.Under the percentage of completion method year 2's gross profit is

• A)$150,000.
• B)$500,000.
• C)$700,000.
• D)$350,000.

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Definitions:

Verbal Communication

The exchange of information and ideas through spoken words, including face-to-face conversations, telephone calls, and public speaking.

Work Choice

Pertains to the autonomy and opportunity individuals have in selecting their occupation or tasks.

Directive Communication

A style of communication where instructions and expectations are clearly stated to ensure tasks are understood and executed effectively.

Strong Opinions

Firmly held beliefs or judgments that are not easily swayed by opposing arguments or evidence.