Revenue Generally Should Be Recognized

question 54

Multiple Choice

Revenue generally should be recognized

• A)at the end of production.
• B)at the time of cash collection.
• C)when performance is achieved.
• D)when performance is achieved and the amount earned is measurable and collectible.

---

Definitions:

Multiproduct Cost Function

A Multiproduct Cost Function calculates the cost of producing different products within the same firm, taking into account the cost interactions between producing multiple products.

Economies of Scope

Cost advantages that a business experiences by producing a wider variety of products, as opposed to specializing in a single product or service.

Learning Curve

Graph relating amount of inputs needed by a firm to produce each unit of output to its cumulative output.

Average Costs

The total cost of production divided by the quantity produced, indicating the cost per unit of product or service.