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IrinaVladis [17]
3 years ago
15

The Better Building Company has a contract to build a building for $100 million. The estimate of the cost of the project is $75

million. In the first year of the project, BB had costs of $30 million. The Better Building Company’s reported profit for the first year of the contract, using the percentage-of-completion method, is:
Business
1 answer:
Leni [432]3 years ago
5 0

Answer:

$10 million

Explanation:

Calculation for the reported profit for the first year of the contract

Using this formula

Reported profit=(BB Costs/Project cost estimate)×(Building contract-Project cost estimate)

Let plug in the formula

Reported profit = ($30 million / $75 million)×($100 million – $75 million)

Reported profit=0.4 million ×25 million

Reported profit= $10 million

Therefore the reported profit for the first year of the contract will be $10 million

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The short run is defined as A. a period of time of five years or less. B. the period of time in which all factors of production
allochka39001 [22]

Answer:

C. the period of time in which at least one factor of production is fixed.

Explanation:

  • The short-run is a condition, were some controls and market are not in fair equilibrium, some factors like the variables and other that are foxed have limited entry or exit to the industry.  
  • In the macroeconomics a long run is a time when the general price, and contractual wage rates, along with the expectations are adjusted entirely to the states of the economy. and this contrast to the short-run where the variable is not fully fixed or adjusted.
  • <u>The short-run for a firm will increase the production of the marginal costs is less than the marginal revenue. The transition from the short to the long-run market equilibrium may be done on considering the supply and demands.</u>
4 0
3 years ago
In many larger U.S. based firms the __________ match(es) the overall strategy of the firm and reinforce(s) the culture emerging
Gre4nikov [31]

Answer:

Reward system

Explanation:

The reward system is the mechanism that a company uses to provide a compensation to their employees that can include salary, bonuses, equity and perks to keep them happy, maintain loyalty and increase motivation. This allows the company to have a strong team that is willing to work hard in their daily activities to achieve the company's goals.

According to this, the answer is that in many larger U.S. based firms the reward system match(es) the overall strategy of the firm and reinforce(s) the culture emerging from day-to-day activities because the reward system is established in a way in which it contributes to the appropiate implementation of the strategy to achieve the goals and it also helps strengthen the way in which people perform their activities.

4 0
2 years ago
you texpect to receive a payout from a trust fund in 3 years. The payout will be for $11000. You plan to invest the money at an
MrMuchimi

Answer:

11.68 years

Explanation:

For computing the number of years first we have to applied the NPER formula i.e to be shown in the attachment below:

Given that,  

Present value = $11,000

Future value = $19,000

Rate of interest = 6.5%

PMT = $0

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the number of years is 8.68

Now after 3 years, it would be

= 8.68 + 3

= 11.68 years

3 0
3 years ago
On January 1, 2020, Martinez Company makes the two following acquisitions. 1. Purchases land having a fair value of $330,000 by
vova2212 [387]

Answer:

Explanation:

a)

Date Account Titles and Explanation Debit Credit

January 1, 2020 Land $360,000.00

Discount on notes payable $246,621.00

Notes payable $ 606,621.00

(To record purchase of land by issuing note payable)

PV of $606,621 discounted at 11% =606,621/(1.11)^5 = $ 360,000

2.

Computation of the discount on notes payable:

Maturity value $560,000

Present value of $560,000 due in 8 years at 11% = $560,000 * 0.43393 = $ 243,000

Present value of $39,200 payable annually for 8 years at 11% annually—$39,200 * 5.14612 = $ 201,728

Present value of the note = $ 243,000 + $ 201,728 = $ 444,728

Discount = $ 560,000 - $ 444,728 = $ 115,272

Date Account Titles and Explanation Debit Credit

January 1, 2020 Equipment $444,728.00

Discount on notes payable $115,272.00

Notes payable $ 560,000.00

(To record purchase of equipment by issuing note payable)

b)

1.

Date Account Titles and Explanation Debit Credit

December 31, 2020 Interest expense ($ 360,000*11%) $39,600

Discount on notes payable $39,600

(To record the interest expense recorded and discount amortized)

2.

Date Account Titles and Explanation Debit Credit

December 31, 2020 Interest expense ($444,728 * 11%) $48,920

Discount on notes payable $9,720

Interest Payable ( $ 560,000 * 7%) $39,200

(To record the interest expense recorded)

7 0
3 years ago
In the Control Process, it is important to use the proper comparison method when comparing task results with its objectives and
DaniilM [7]

Answer: Personal comparison

Explanation:

When it comes to the Control Process, entities are allowed to use several comparison methods when comparing task results with objectives.

These include:

  • the Historical method where current performance is compared to past performance
  • the Relative comparison method where the organization's performance is compared against a benchmark of other organizations in the industry.
  • Engineering comparison where schedules are used to ensure that activities finish on time.

Personal comparison is not an acceptable method.

4 0
2 years ago
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