When Accounting for Long- Term Contracts (Other Than Those for Services)

question 1336

Multiple Choice

When accounting for long- term contracts (other than those for services) , all of the following accounting methods may be acceptable with the exception of

• A) the completed contract method.
• B) the percentage of completion method.
• C) the modified percentage of completion method.
• D) the allocated completion method of accounting.

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Definitions:

Centralized Decision-Making

A decision-making approach where major decisions are made by a small group or single entity within the organization, often at the top level.

Continuous Improvement

A sustained effort to refine products, services, or processes with gradual and radical enhancements.

PDCA

An iterative four-step management method used in business for the control and continuous improvement of processes and products. It stands for Plan-Do-Check-Act.

Plan-Do-Check-Act

A four-step management method used for the control and continuous improvement of processes and products.