The Percentage of Completion Profit for a Particular Project of Redgate

question 6

Multiple Choice

The percentage of completion profit for a particular project of Redgate Ltd was $200 000 for year 1 and $220 000 for year 2 (completion) .
-What difference would there be to the total profit for the two years if the completion of production method were used?

• A) Profit would be $200 000 higher.
• B) Profit would be $420 000 higher.
• C) Profit would be $420 000 lower.
• D) There would be no difference.

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Definitions:

Job Evaluation

A systematic process used to determine the relative worth or value of a job in comparison to other jobs within an organization.

Market Surveying

The process of gathering, analyzing, and interpreting information about a market, including potential customers and competitors.

Skill Level

The degree of competence or expertise required to perform a job effectively, often determined by education, training, and experience.

Total Compensation Costs

The complete range of costs incurred by an employer to provide wages, salaries, and all other employee benefits and perks.