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NEW QUESTION: 1
Merry Lucnhco Co., Corporation uses the percentage-of-completion method to recognize revenue. In
2 000, Merry Lucnhco Co., agreed to construct a facility at a total contract price of $28.0 million and a total expected cost of $24.0 million. Actual costs and cash inflow information are presented below (in
$ millions):
How much income did Merry Lucnhco Co., earn from the contract for years 1998, 1999, 2000 respectively?
A. 0.4700 0.9400 0.9900
B. 0.2350 0.4700 0.4950
C. 0.7833 1.5667 1.6500
Answer: C
Explanation:
Cumulative Cost 1998 = (4.7/24.0)*100 19.5833% Cumulative Revenue 1998=
(4.7/24.0)*28.0 = 5.483333 Profit= Current Revenue - Expense = 0.783333
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B. Review the project scope with the functional manager responsible for the greatest
number of requested changes.
C. Explain to those requesting changes the negative impact of change to the project.
D. Notify all stakeholders that no more changes will be allowed.
Answer: D
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