This Year,a Contractor Agrees to Build a Building for $2,000,000,which

question 111

Multiple Choice

This year,a contractor agrees to build a building for $2,000,000,which will be completed by the end of next year.The builder's cost is estimated to be $1,700,000.The actual costs this year are $800,000 and next year's actual costs are $800,000.If the tax rate is 20% and the interest rate is 10%,the look back interest for the percentage of completion method is

• A)$ 0.
• B)$1,176.
• C)$2,000.
• D)$6,000.

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Definitions:

Variance

A measure of the dispersion of a set of values, calculated as the average of the squared deviations from the mean.

Observations

The instances or data points collected or recorded for the purpose of analysis.

Coefficient of Variation

A standardized measure of the dispersion of a probability distribution or frequency distribution.

Weights

Quantitative values assigned to elements of a set as a measure of their importance or influence in statistical calculations.