The Principal Advantage of the Cost-Recovery Method Is That

question 80

Multiple Choice

The principal advantage of the cost-recovery method is that

• A)reported revenue is based on final results rather than estimates of unperformed work.
• B)it reflects current performance when the period of a contract extends into more than one accounting period.
• C)it is not necessary to recognize revenue at the point of sale.
• D)a greater amount of gross profit and net income is reported than is the case when the percentage-of-completion method is used.

---

Definitions:

Byobu

Japanese painted folding screens.

Ashikaga Clan

A prominent Japanese samurai clan that established the Ashikaga shogunate and ruled Japan during the Muromachi period (1336–1573).

Art Historical Period

A specific phase in art history that is characterized by distinct styles, techniques, and cultural influences.

Muromachi

A period in Japanese history (1336–1573) characterized by the political dominance of the Ashikaga shogunate and significant cultural developments including tea ceremony and ink painting.