In Year 1 a Contractor Agrees to Build a Building

question 41

Multiple Choice

In year 1 a contractor agrees to build a building for $2,500,000 by the end of year 2.The builder's cost is estimated to be $1,800,000.The actual costs year 1 are $900,000 and year 2's actual costs are $1,300,000.Under the completed contract method,the gross profit for year 1 is

• A)$0.
• B)$300,000.
• C)$350,000.
• D)$700,000.

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Definitions:

Conflict Management Style

The approach and techniques an individual or group uses to handle disagreements or disputes.

Intermediate Levels

Positions or stages that are between the initial and final stages in a process, system, or hierarchy.

Compromise

A conflict management style that combines intermediate levels of assertiveness and cooperation.

Power Differences

The disparities in authority, control, and influence among individuals or groups within organizations or societies.