The CPA Firm of Peck, Williams, and Shafner Is Conducting

question 85

Multiple Choice

The CPA firm of Peck, Williams, and Shafner is conducting an audit of Monolith Enterprises. The audit is estimated to take 4 months to complete and will use $4,000 in supplies, $200,000 in labor, and $320,000 in overhead. Peck's annual rate is 18%. At the end of the fourth month, Peck finds that the audit will take an additional 2 months to complete and another $200,000 in labor and overhead. What are the additional financial holding costs for the 2 extra months on this project?

• A) $0
• B) $3,000
• C) $18,720
• D) $21,720

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Definitions:

Communicative Peers

Colleagues who actively engage in sharing information, feedback, and support, facilitating open and effective workplace communication.

Immediate

Something occurring or done instantly without delay.

General Nature

The broad or overall characteristics or feelings of a subject, object, or environment.

Feedback

Information provided regarding aspects of one’s performance or understanding, intended to guide future improvements.