In Year 1 a Contractor Agrees to Build a Building

question 452

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 $1,300,000. Under the completed contract method the gross profit for year 2 is

• A) $350,000.
• B) $300,000.
• C) $700,000.
• D) $0.

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Definitions:

Recursive

Relating to a process that repeats itself or refers back to itself in its formulation or execution.

Direct Order Plan

An organizational pattern that presents the main idea or proposal at the beginning, followed by supporting details or arguments.

Direct Order Plan

A method of organizing written communication where the main point or conclusion is stated first, followed by supporting details or evidence.

Human Resources

The department within an organization that focuses on employee recruitment, management, and providing direction for the people who work in the organization.