According to the SEC's SAB No

question 13

Multiple Choice

According to the SEC's SAB No. 101, which of the following is not necessary for revenue recognition?

• A) The seller's price to the buyer is fixed.
• B) Collectibility is reasonably assured.
• C) The seller has determined that the buyer will take the discount.
• D) Persuasive evidence of an arrangement exists.

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Definitions:

Per Unit Basis

A method of cost allocation or measurement that divides a total by the number of units to find the cost per unit.

Fixed Production Costs

Manufacturing costs that remain constant regardless of the level of production, such as rent and salaries of permanent staff.

Per Unit

A term that describes costs or revenues on a single unit basis.

Variable Costs

Expenses that directly fluctuate in proportion to the production or service activity level.