Under the Percentage of Completion Method, the Amount of Work

question 107

Multiple Choice

Under the percentage of completion method, the amount of work completed in a particular year is typically determined by comparing which of the following?

• A) The total costs incurred to date divided by the contract price.
• B) The cost incurred that year divided by the contract price.
• C) The total costs incurred to date divided by the cash collected to date from the customer.
• D) The costs incurred that year divided by the estimated total costs of the project.