In Year 1 a Contractor Agrees to Build a Building

question 108

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 $1,100,000.Under the percentage of completion method year 2's gross profit is

• A)$150,000.
• B)$500,000.
• C)$700,000.
• D)$350,000.

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Definitions:

Adjustment

A change or modification made to correct, improve, or adapt something to a particular situation or condition.

On-The-Job Stress

Workplace-related stress characterized by feelings of anxiety, pressure, and tension resulting from job demands and work environment.

Respondents

Individuals who provide answers or feedback to questions in a survey, interview, or study.

Excessive Stress

A level of stress that surpasses an individual's ability to cope, potentially leading to negative health outcomes.