Under ASPE, When Selecting an Accounting Method for a Newly

question 412

Multiple Choice

Under ASPE, when selecting an accounting method for a newly contracted long-term construction project, the principal factor to be considered should be

• A)the terms of payment in the contract.
• B)the degree to which a reliable estimate of the costs to complete and extent of progress
• Toward completion can be made.
• C)the method commonly used by the contractor to account for other long-term construction
• Contracts.
• D)the inherent nature of the contractor's technical facilities used in construction.

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Definitions:

Budget

An estimate of income and expenditure for a set period of time, often used by businesses and governments to plan financial activities and resource allocations.

Strategy

A high-level plan or set of actions designed to achieve long-term objectives or overall goals in a competitive context.

First-Mover Advantage

The competitive advantage gained by a company that first introduces a product or service to the market, often leading to high brand recognition and customer loyalty.

Prospector

A strategy or role in business or management characterized by a focus on innovation, risk-taking, and the exploration of new markets or opportunities.