Which of the Following Recognizes Revenue Based on Costs Incurred

question 9

Multiple Choice

Which of the following recognizes revenue based on costs incurred relative to estimated total costs?

• A)Cost recovery
• B)Instalment
• C)Percentage of completion
• D)Completed contract

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Definitions:

Demand

Demand refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

Price Decrease

A reduction in the cost that buyers must pay for a good or service.

Normal Good

A type of good for which demand increases when income increases, and falls when income decreases.

Income Rises

An increase in the amount of money received by individuals or entities, typically through wages, investments, or business activities.