Contracts & ExecutionQuestion 200 of 1605
A contractor budgets a job at $250,000 total cost and is 60% complete. To stay on budget, total spending to date should be approximately:
a.$60,000
b.$150,000
c.$250,000
d.$100,000
Explanation
If progress and spending track together, spending at 60% complete should be about 60% of the $250,000 budget: 0.60 x $250,000 = $150,000. Spending much above this signals a possible overrun.
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