A general contractor tracks job costs using the percentage-of-completion method. If the total contract value is $500,000, total estimated costs are $400,000, and actual costs incurred to date are $160,000, what percentage of the project is complete?
Correct Answer
D) 40%
Percentage complete = (Actual costs incurred ÷ Total estimated costs) × 100 = ($160,000 ÷ $400,000) × 100 = 40%
Why This Is the Correct Answer
Percentage complete = (Actual costs incurred ÷ Total estimated costs) × 100 = ($160,000 ÷ $400,000) × 100 = 40%
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