On 1 January 2014,Peter Ltd Signed a Contract Worth $64

question 32

Multiple Choice

On 1 January 2014,Peter Ltd signed a contract worth $64 000 000 to construct the Cycling Stadium.The stadium was to be built over three years,with progress payments as follows: Estimated costs were $50 000 000.The project was 35 per cent complete at the end of 2014,75 per cent complete at the end of 2015 and 100 per cent complete at the end of 2016.Revenues and costs were as estimated
-How much profit was earned during 2015 if the percentage of completion method was used?

• A) $5 600 000
• B) $4 375 000
• C) $3 500 000
• D) $10 500 000

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Definitions:

Meals

Meals include the food and beverages consumed predominantly for nutrition or sustenance, often categorized based on the time of day or occasion.

Activity Variances

The difference between the budgeted and actual costs associated with a specific activity, indicating whether the activity was more or less expensive than planned.

Customers Served

The number of customers or clients who have received products or services from a company within a specific period.

Activity Variances

Differences between the budgeted amounts and the actual costs incurred for various activities within a company, used for management analysis and control.