This Year,Hamilton,a Local Manufacturer of Off-Shore Drilling Platforms,entered into a Contract

question 11

Multiple Choice

This year,Hamilton,a local manufacturer of off-shore drilling platforms,entered into a contract to construct a drilling platform that will be placed in the North Atlantic Ocean.The total contract price is $5,000,000,and Hamilton estimates the total construction cost at $3,000,000.Actual costs incurred this year are $600,000.If Hamilton uses the percentage of completion method,the gross profit for this year is

• A)$0.
• B)$400,000.
• C)$600,000.
• D)$2,000,000.

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Definitions:

Critical Path

The longest sequence of activities in a project plan which must be completed on time for the project to complete on due date.

Project Management

The discipline of planning, executing, and overseeing resources to achieve specific goals within a defined timeline and budget.

Analytical Approach

A method of problem-solving or decision-making that involves breaking down a system into its components to understand its structure and dynamics.

Correlation Matrix

A table showing the correlation coefficients between variables, illustrating how changes in one variable are associated with changes in another.