The Profit for a Particular Project of Blue Fin Ltd,using

question 47

Multiple Choice

The profit for a particular project of Blue Fin Ltd,using the percentage of completion method,was $470 000 for year 1 and $690 000 for year 2 (completion) .
-What difference would there be to profit for year 2 if the completion of production method were used?

• A) Profit would be $1 160 000 higher.
• B) Profit would be $690 000 higher.
• C) Profit would be $470 000 lower.
• D) Profit would be $470 000 higher.

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Definitions:

Import

The practice of acquiring goods or services from outside a nation's borders for resale purposes.

Agricultural Goods

Products derived from agriculture, including crops and livestock, used for food, fuel, feed, and fiber.

Heckscher-Ohlin Theorem

An economic theory stating that countries export what they can most efficiently and abundantly produce, based on their factor endowments of labor and capital.

Pharmaceuticals

Products and substances manufactured and sold for the diagnosis, treatment, or prevention of diseases and health conditions.