A Taxpayer Must Use the Same Accounting Method,either Percentage of Completion

question 29

True/False

A taxpayer must use the same accounting method,either percentage of completion or completed contract method,for all long-term contracts in the same trade or business.

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Definitions:

Machine-Hours

The total hours that machinery is operational and actively being used in the production process, often used as a basis for allocating manufacturing overhead.

Manufacturing Overhead

A rephrased description: Costs indirectly linked to the production of goods, such as maintenance, factory supplies, and quality control.

Unit Product Cost

The cost to produce a single unit of product, calculated by dividing the total production costs by the number of units produced.

Unit Product Cost

The cost incurred to produce, manufacture, or acquire a single unit of a product.