The Revenue Recognition Method Most Often Used for Short-Term Construction

question 27

Multiple Choice

The revenue recognition method most often used for short-term construction projects is to recognize revenue:

• A)during the construction process as a percentage of the costs completed.
• B)at the completion of the project.
• C)at the time the construction contract is signed.
• D)as cash is received.

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Definitions:

Profit-Maximizing

The strategic process used by businesses to determine the price and output level that generates the most profit.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified period of time.

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust to meet changes in the market.

Industry Entry

The process of a new competitor or company beginning operations in a specific market or industry.