Using the Cost Method to Calculate the Percentage of Completion,the

question 67

Multiple Choice

Using the cost method to calculate the percentage of completion,the formula for the current period revenue or gross profit to be recognised is:

• A) costs incurred to the end of the current period divided by most recent estimate of total costs.
• B) estimated total revenue or gross profit from the contract multiplied by (costs incurred to the end of the current period divided by most recent estimate of total costs) less (total revenue or gross profit recognised in prior periods).
• C) costs incurred to the end of the current period divided by most recent estimate of total costs multiplied by (total revenue or gross profit recognised in prior periods).
• D) estimated total revenue or gross profit from the contract divided by (costs incurred to the end of the current period multiplied by most recent estimate of total costs) less (total revenue or gross profit recognised in prior periods).

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Definitions:

Emotional Support

Assistance provided through empathy, concern, and affection to help individuals cope with stress, challenges, or emotional distress.

Problem Solving

A method of identifying a problem, finding alternative solutions, and choosing and implementing the most suitable solution.

Reference Group

A group that individuals compare themselves to for self-evaluation or guidance in forming attitudes and behaviors.

Values

Core beliefs or principles that guide behaviors and decisions in individuals and organizations.