Strategic Commitments Are Actions That Are

question 55

Multiple Choice

Strategic commitments are actions that are

• A) inexpensive, long-term oriented, and difficult to reverse.
• B) inexpensive, short-term oriented, and easy to reverse.
• C) costly, long-term oriented, and difficult to reverse.
• D) costly, short-term oriented, and easy to reverse.

---

Definitions:

Service Contract

A service contract is a legally binding agreement between two parties where one agrees to provide a specified service to the other for a payment.

SEC

The U.S. Securities and Exchange Commission, a federal agency that regulates the securities markets and protects investors.

Revenue Recognition Criteria

The set of guidelines that determines the specific conditions under which revenue is recognized in the accounting period.

Fixed-Price Contract

A contract where the service or product delivery price is agreed upon before the work begins, regardless of the actual costs incurred during the project.