Solution:
Computation of % , revenue recognition and gross profit - Beck construction (In millions )
Year Actual cost incurred (A)
2020 $ 50
2021 $ 85
2022 $ 55
Year Total cost incurred till date (B)
2020 $ 50
2021 $ 135
2022 $ 190
Year Total Estimated cost (C)
2020 $ 150
2021 $ 220
2022 $ 190
Year % of completion (D) (B/C)
2020 33%
2021 61%
2022 100%
Year Contract price (E)
2020 $187
2021 $187
2022 $187
Year Total revenue to be recognised (F) ( E*D)
2020 $62
2021 $114
2022 $187
Year Revenue for current period (G)
2020 $62
2021 $52
2022 $73
Year Gross Profit (H) (G-A)
2020 $12
2021 $-33
2022 $18
Answer:
tax
Explanation:
Tax is really the strongest alternative for achieving maximum social efficiency. That is because it is defined previously itself that even if the company opted for a contract, this has high operating costs and this transaction cost can be treated as a dead weight loss of that contract.
The loss of dead weight is a social loss and prevents the social system from achieving socially optimal results.Another factor that should be noticed about the contract process is, there might be certain compliance problems with private parties to execute such a deal.
Answer:
The answer is D. $1,830
Explanation:
FIFO means First in First out.
It is one of the inventory methods along with LIFO(Last in First out), average weighted cost and specific identification.
FIFO literally means the inventory bought first will be the first to be sold. Leaving the last inventories bought as the ending inventory.
In this question, Cost of Sales according to FIFO is:
250 units x $6 = $1,500
30 units at $11 = $330
Total =. $1,830
Therefore, the cost of sales under this method is $1,830
Answer:
Increase the amount of the initial investment by $12,000 (C)
Explanation:
Option A- False. It is not a sunk cost but a relevant cost because it has a disposal value and there is market for the sale.
Option B-False. The NPV of the project will be reduced by $12,000 because it is a relevant cost and the disposal value will reduce the NPV of the project .
Option C- True. Because truck could have been sold for $12,000 if not use in the project, the disposable value will have to be added to the initial cost of the investment.
Answer: (D) all of the above
Explanation: