Exhibit 17-1 The Following Information Relates to a Project of the Cumberland

question 67

Multiple Choice

Exhibit 17-1
The following information relates to a project of the Cumberland Construction Company: The contract price was $1,200,000. Cumberland uses the cost-to-cost method of revenue recognition.
-Refer to Exhibit 17-1. What amount of revenue would be recognized in 2016?

• A) $400,000
• B) $192,000
• C) $136,000
• D) $0

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Definitions:

Average Expense

An average amount of money spent, typically calculated over a specific period of time, reflecting common expenditure patterns.

Standard Deviation

Standard deviation is a measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean of the data set.

Confidence Interval

A statistical measure that provides an estimated range of values likely to include a population parameter, calculated from a given set of sample data.

Population Mean

The population mean is the average value of all data points in a full set of values, representing the central tendency of the population.