Thompson Construction Began a Construction Project in 2016

question 4

Essay

Thompson Construction began a construction project in 2016. The contract price was $1,250,000, and the estimated costs were $1,000,000. Data for each year of the contract are as follows:
Required:
Assuming Thompson satisfies its performance obligation over time, determine: 1) The balance of Construction in Progress at the end of 2016.
2) How the net amount for construction in progress inventory should be reported on the
2017 balance sheet.
3) The gross profit for 2018.

Acknowledge the role of integration and collaboration tools in SCM, such as EDI, XML, and intranets.

Understand the implications of inventory velocity on customer satisfaction and supply chain performance.

Understand the various types of CRM applications and their functionalities.

Describe how CRM systems enhance business intelligence through customer behavior analysis.

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Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than others.

Trade

Trade involves the exchange of goods or services between parties, which can be within a country or between countries.

Resources

Economic or productive factors required to accomplish an activity, or to provide a service or product, such as land, labor, and capital.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen; the value of the next best alternative foregone.