Using the Percentage-Of-Completion Method, Indiana

question 23

Multiple Choice

Using the percentage-of-completion method, Indiana:

• A)Recognized no gross profit or loss on the project in 2009.
• B)Recognized $6 million loss on the project in 2009.
• C)Recognized $9 gross profit on the project in 2009.
• D)Recognized $36 million loss on the project in 2009.The project is expected to make a gross profit of $30 million (i.e., $150 million - $36 million $84 million) and the % completed is 30% (i.e., $36 million / $120 million).Therefore, 30% $30 million = $9 million.

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Definitions:

Exchange Tactic

A strategy used in negotiations or interactions where one party offers something in return for something from the other party, emphasizing reciprocity.

Domination

The exercise of control or influence over someone or something, often in a manner that restricts freedom or autonomy.

Influence

The capacity to affect the character, development, or behavior of someone or something, or the effect itself.

Attrition

The process of reducing the workforce through voluntary or involuntary departures, not including layoffs due to external factors.