5Realtime hourly labor costs based on carefully calculated e

5.“Real-time” hourly labor costs based on carefully calculated estimates are used for job costing and for established labor rates in time and material contracts True or False 6.Tax accounting uses the financial accounting format and timing without alteration to calculate taxes due True or False

7. Fixed assets (property, plant, and equipment) are valued at acquisition cost less accumulated depreciation. Only assets with a useful life of 1 year or more appear on the balance sheet True or False

8. Income and taxes are hard facts that cannot be influenced or altered by management’s opinions True or False

9. The balance sheet states the position of a construction firm at a point in time and the income statement states the impact of transactions for a period of time True or False

10. The schedule of administrative overhead identifies fixed costs that must be paid every year—even if no projects are performed. The profit realized from construction projects must exceed the administrative overhead before the firm will realize a profit for the year. True or False

Solution

5. Ture- The values of the labour cost and the material cost is based on real life calculations with certain level of assumptions.

6.False-with alteration to calculate tax.

7.true

8.false.-For examples in India government has introduced Goods and Services tax thereby modifying the taxes on many products.

9.True

10.True- The company is to pay a certain amount to government as taxes and these sum of money comes under the overhead cost of the company.