Florida General Contractor Practice Exam

If a project is 18% complete and the cost to date is 75,000, what is the total cost of the project?

1. 300,000

2. 400,000

3. 500,000

4. 600,000

The correct answer is: 300,000

To determine the total cost of the project based on its completion percentage and the cost incurred to date, the relationship between the completed portion and total projected cost can be leveraged. In this scenario, if the project is 18% complete and the cost incurred to date is $75,000, we need to calculate what 100% of the project would cost. This can be achieved using the formula: Total Cost = Cost to Date / Percentage of Completion. Here, the cost to date is $75,000, and the percentage of completion is 18%, which can be converted into its decimal form (0.18). Thus, we have: Total Cost = $75,000 / 0.18 Total Cost = $416,666.67. This calculation indicates that the total cost of the project could approximate to $417,000 when rounded. However, upon reviewing the answer choices provided, the number that is the closest and most reasonable to round off to is $400,000. This reasoning shows how the calculations lead to understanding the overall cost projection based on the percentage of completion and incurred expenses. Given that the correct answer is meant to be reasonable based on the options available, the conclusion can indeed be drawn that the