The answer is B because both have access to capital that competitive markets wouldn’t give them because they dominate the market place and drive out competitors
Explanation:
The preparation of the end December Income statement for Cowboy Law Firm is presented below:
Cowboy Law Firm
Income statement
Revenue
Service Revenue $7,900
Total revenues $7,900 (A)
Less: Expenses
Salaries expense $1,500
Utilities expense $1,000
Total expenses $2,500 (B)
Net income $5,400 (A- B)
Answer:
Answer is the FCAC is greater than the TBC.
Refer below.
Explanation:
A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget. If the cumulative actual cost is greater than the cumulative earned value, then: FCAC is greater than the TBC.
