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Art [367]
3 years ago
12

In Spring 2018, Parmac Engineering Company signed a $160 million contract with the city of Parkersburg, to construct a new city

hall. Parmac expects to construct the building within two years and incur expenses of $120 million. The city of Parkersburg paid $40 million when the contract was signed, $80 million within the next six months, and the final $40 million exactly one year from the signing of the contract. Parmac incurred $48 million in costs during 2018 and rest in 2019 to complete the contract on time. Using the percentage-of-completion method how much revenue should Parmac recognize in 2018?
Business
1 answer:
marta [7]3 years ago
7 0

Answer:

By using the percentage-of-completion method the $64 million revenue should Parmac recognize in 2018

Explanation:

Percentage-of-completion method : Under this method,

First we have to calculate the percentage which is based on current period cost to total period cost.

After that, multiply the percentage with the revenue so that we get to know how much revenue is being recognized during an particular year.

In mathematically,

Estimated Cost percentage =  current period cost ÷ total period cost

                                              = $48 million ÷ $120 million

                                              = 40%

Now,

Revenue recognized = Estimated cost percentage × Revenue

                                   = 40% × $160 million

                                   = $64 million

Hence, by using the percentage-of-completion method the $64 million revenue should Parmac recognize in 2018

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The AUD/$ spot exchange rate is AUD1.60/$ and the SF/$ is SF1.25/$. The AUD/SF cross exchange rate is _____. Group of answer cho
DaniilM [7]

Answer:

a. $1.2800

Explanation:

The AUD/SF cross exchange rate is as computed below:

==> AUD/$ ÷ SF/$

==> $1.60 / $1.25

==> $1.2800

So, the AUD/SF cross exchange rate is $1.2800

6 0
2 years ago
Q 5.34: A wholesaler offers credit terms 1/10, n/30. A fabric store bought goods worth $6,500 from the wholesaler. Within the di
AnnyKZ [126]

Answer:

the wholesaler received $6,138 as payment.

Explanation:

The seller would receive the the amount owing to customer less the return credit and cash discount of 1 %.

The calculation of this amount is as follows :

Account Receivable                        $6,500

Less Return Credit                            ($300)

                                                         $6,200

Less Cash discount ($6,200 × 1%)      ($62)

Payment                                            $6,138

Conclusion :

the wholesaler received $6,138 as payment.

6 0
3 years ago
Here are three things you could do if you do not attend your neighbor's barbecue: watch television with some friends (you value
Colt1911 [192]

Answer: Option (c) is correct.

Explanation:

Given that,

Alternatives for a person if he do not attend his neighbor's barbecue:

(1) Watch television with some friends = he value this at $17

(2) Read a good novel = he value this at $14

(3) Go in to work = he could earn $16 during the barbecue

Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.

If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.

Therefore, the opportunity cost of going to his neighbor's barbecue is the enjoyment he get from watching television with some friends because this is the highest valued alternative forfeited.

7 0
3 years ago
Standard Aluminum Company is planning to lease CNC equipment for its production and finishing departments. Currently, the produc
Rom4ik [11]

Answer: $313,247

Explanation:

Independent lease cost :

Production department = $410,000

Finishing department = $360,000

Joint lease cost = $(410,000 + 360,000) - $100,000 = $670,000

Using the standard alone cost allocation method ;

Finishing department percentage is given by;

Finishing department independent cost ÷ (finishing department independent cost + production department independent cost)

$360,000 ÷ ($360,000 + $410,000)

$360,000 ÷ $770,000

0.4675324467 = 46.75324467%

Therefore, finishing department share of the joint lease cost will be ;

0.4675324467 × $670,000 = $313,246. 73

$313,247

4 0
3 years ago
Read 2 more answers
During the growth stage of a product life cycle, companies should focus on: a. creating product differentiation. b. increasing o
GuDViN [60]

Answer:

Option A Creating Product Differentiation

Explanation:

The reason is that in the growth stage the company must add further features to the product to increase the product life and also capture the additional market share. This will only be possible if we have product differentiation.

The option D says that using anti-competitive strategy will give advantage to companies but this is not true, the reason is that the entrants enter the market when the product is at mature position (Normally). But this is not true in all situations.

So the best option is A

8 0
2 years ago
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