RJB Building Routinely Bids on Construction Jobs

question 67

Multiple Choice

RJB Building routinely bids on construction jobs.RJB first determines the budgeted product cost of the job and then applies a markup of 45%.If a bid of $20,000 is submitted for a new job,which of the following statements applies?

• A)The budgeted product cost is $20,000.
• B)$6,207 includes selling and administrative expense and profit.
• C)All costs pertaining to the job total $20,000.
• D)$6,207 includes fixed overhead, selling and administrative expense, and profit.

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Definitions:

Employment Contract

A legally binding agreement between an employer and an employee that outlines the terms and conditions of employment.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Signing Authority

The legal power granted to an individual or entity to sign official documents on behalf of another person or organization.

Breached Fiduciary Duty

A violation where a person in a position of trust fails to act in the best interests of another party they owe a duty to.