EBM is a large, publicly held Corporation. The company does about 80% of its work in government contracts. All contracts use a cost plus fixed fee basis; costs of jobs are agreed upon by contract. Any overruns will result in losses to the company. The company controller, Brendan Roche CPA, is discussing two current jobs with the Job Supervisor, Ashley Henry. Job 100 is currently coming in under budget, but due to construction problems, Job 102 is 20% overbudget. Roche is considering the possibility of having employees who work on Job 102 record their time to Job 101.
Required: What are the implications of such actions?

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The Answer of EBM is a large, publicly held Corporation. The company does about 80% of its work in government contracts. All contracts use a cost plus fixed fee basis; costs of jobs are agreed upon by contract. Any overruns will result in losses to the company. The company controller, Brendan Roche CPA, is discussing two current jobs with the Job Supervisor, Ashley Henry. Job 100 is currently coming in under budget, but due to construction problems, Job 102 is 20% overbudget. Roche is considering the possibility of having employees who work on Job 102 record their time to Job 101.
Required: What are the implications of such actions?

EBM Is a Large, Publicly Held Corporation