商业财务第 1116 / 1632 题
If a contractor underestimates his overhead rate when bidding, the most likely result is:
a.Bids come in high and he wins fewer jobs
b.Jobs are underpriced and the company loses money
c.His income taxes fall along with the reported profit
d.Overhead is absorbed by his subcontractors
解析
When the overhead rate built into the markup is too low, every bid is priced below the true cost of doing business: the job can show a profit on its own sheet while the company loses money once real overhead is paid. Bidding high is the result of the opposite error, over-recovering overhead. Lower taxes follow a lower profit but are a symptom, not the harm. And subcontractors price their own overhead into their own numbers; nothing shifts the general contractor's overhead onto them.
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同考点相关题目
- A contractor's job has $10,000 direct costs. He adds 15% for overhead and then 10% profit on the resulting subtotal. What is the final price?
- Overhead costs are best described as:
- A contractor completes $800,000 in revenue with $560,000 direct costs and $160,000 overhead. What is the net profit and net profit margin?
- A contractor has fixed costs of $90,000 per year. His contribution margin (price minus variable cost) is 30% of revenue. What annual revenue does he need to break even?
- A contractor's fixed (overhead) costs are $60,000/year. Each job nets $2,000 of contribution margin. How many jobs must he complete to break even?
- The break-even point is best defined as the level of sales at which:
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审核人 Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — 核实)