Highrise Constructions Ltd Had a Large 3-Year Project with Total

question 22

Multiple Choice

Highrise Constructions Ltd had a large 3-year project with total revenue of $5 000 000 and estimated total costs of $4 200 000. The project was 25% complete at the end of the first year, 55% complete at the end of the second year, and 100% complete at the end of the third year. Revenues and costs were as estimated.
-What profit was earned during the second year if the percentage of completion method was used?

• A) $200 000
• B) $240 000
• C) $440 000
• D) $1 500 000.

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Definitions:

Population Mean

The average of a set of characteristics or values within an entire population.

Midrange

The statistical measure calculated by adding the highest and lowest values in a dataset and then dividing by two, indicating the midpoint of the data range.

Variance

A measure of the dispersion or spread of a set of data points around their mean value, indicating how much the data points differ from the average.

Standard Deviation

A calculation that quantifies the extent of deviation or spread within a group of data points.