When Losses Occur on Long-Term Contracts Using the Percentage-Of-Completion Method,they

question 105

Multiple Choice

When losses occur on long-term contracts using the percentage-of-completion method,they are recognized

• A)in their entirety as soon as it becomes known that a loss will be suffered.
• B)at the completion of the project.
• C)proportionately over the contract period using costs incurred as a base.
• D)evenly over the contract perioD.

---

Definitions:

Test Statistic

A value calculated from sample data that is used in hypothesis testing to decide whether to reject the null hypothesis.

P-values

Measures that help determine the significance of results obtained in statistical hypothesis testing, indicating the probability of observing results if the null hypothesis were true.

Levels Of Significance

A threshold in hypothesis testing that determines the probability at which the null hypothesis is rejected, often denoted by alpha.

P-value

The probability of obtaining test results at least as extreme as the observed results, assuming that the null hypothesis is true.