Lagory CoStarted a Contract in June 2017 to Build a Bridge

question 108

Multiple Choice

Lagory Co.started a contract in June 2017 to build a bridge at a fixed price of $14 million.The bridge was to be completed by October 2019.Total cumulative costs incurred by the end of December 2017 and 2018 were $2 million and $6 million,respectively.Lagory Co.is unable to estimate the total costs of the project prior to completion.Final costs at the end of the project totalled $11 million.How much revenue will Lagory Co.report in 2018?

• A)$2,000,000
• B)$3,000,000
• C)$4,000,000
• D)$14,000,000

Comprehend the notion of payoff profiles and how they are represented graphically for different derivative positions.

Learn about the implications of basis risk in hedging strategies and how it affects the decision-making process.

Explore the concept of cross hedging and its practical application in risk management, as well as the limitations associated with it.

Understand the various forms of business combinations and their characteristics.

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Definitions:

Permanent Income

A theory suggesting that an individual's consumption choices are more influenced by their lifetime average income rather than by their current income.

Advertising

A form of marketing communication used to promote or sell a product, service, or idea through various media channels to reach a target audience effectively.

Public Attitudes

The collective opinions, feelings, and perceptions of the general public or specific groups towards events, individuals, policies, or phenomena.

Creator's Study

A workspace or studio dedicated to an artist, writer, or creator, where ideas are developed and artworks or writings are produced.