In Year 1 a Contractor Agrees to Build a Building

question 73

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 1's gross profit is

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

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Definitions:

Measurable Objectives

Specific, quantifiable, achievable goals set to evaluate the success of a project, employee performance, or organizational outcomes.

Effective Project Managers

Individuals who successfully plan, execute, and close projects, meeting or exceeding stakeholders' expectations through skilled leadership and problem-solving.

Time Element

A factor considering the duration or specific period within which certain activities or processes are expected to occur or be completed.

Gantt Charts

A type of bar chart that illustrates a project schedule, showing the start and finish dates of the various elements and tasks within the project.