Sweet Knee Company Is Constructing a Building

question 57

Multiple Choice

Sweet Knee Company is constructing a building.Construction began in 2008 and the building was completed 12/31/08.Sweet Knee made payments to the construction company of $1,000,000 on 7/1, $2,100,000 on 9/1, and $2,000,000 on 12/31.Average accumulated expenditures were

• A)$1,025,000.
• B)$1,200,000.
• C)$3,100,000.
• D)$5,100,000.

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Definitions:

Flexible Budget

A budget that adjusts or varies according to changes in revenue or activity levels.

Budgets

Financial plans for a defined period, outlining an organization's revenue, expenses, and capital projects.

Colorado Rockies

A professional baseball team based in Denver, Colorado, which competes in the Major League Baseball as a member of the National League West Division.

Revenue Variances

Differences between actual revenues and expected revenues.