Dilla Construction Company's Projects Extend Over Several Years and Collection

question 36

Multiple Choice

Dilla Construction Company's projects extend over several years and collection of receivables is reasonably certain. Each project has a contract that specifies a price and the rights and obligations of all parties. Both the contractor and the customer are expected to fulfill their contractual obligations on each project. Reliable estimates can be made of the extent of progress and cost to complete each project. The method that the company should use to account for construction revenue is

• A) installment sales.
• B) percentage-of-completion.
• C) completed-contract.
• D) cost recovery.

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Definitions:

Target

An objective or goal that is aimed for.

Concept Of Communication

The overarching principle that encompasses various methods and processes involved in the conveyance of messages or information between individuals or groups.

Monthly Budget

A financial plan that allocates expected income towards expenses, savings, and debt repayment over the course of a month.

Planning

The process of establishing objectives and determining the strategies and actions needed to achieve them, often used in the context of projects, events, or business strategies.