Under the Percentage-Of-Completion Method,the Profit to Be Recognized in Any

question 87

Multiple Choice

Under the percentage-of-completion method,the profit to be recognized in any year is based on the ratio of

• A)incurred contract costs divided by estimated total contract costs.
• B)incurred contract costs multiplied by estimated total contract costs.
• C)estimated total contract costs divided by incurred contract costs.
• D)estimated total contract costs multiplied by incurred contract costs.