Which of the Following Statements Does NOT Describe a Long-Term

question 116

Multiple Choice

Which of the following statements does NOT describe a long-term construction project that is accounted for under the completed-contract method?

• A) Revenues are recognized at the end of the contract.
• B) Revenues are recognized evenly throughout the contract.
• C) Gross profit is recognized at the end of the contract.
• D) Losses are recognized immediately.

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Definitions:

Dependent Demand

The demand for items that are directly influenced by the demand for other items, such as components of a final product.

Product Structure Trees

Diagrams that represent the hierarchical relationship between a final product and its raw materials, components, and subassemblies.

Bills-of-Material

A comprehensive list detailing the raw materials, parts, and components needed to manufacture a product, including quantities and specifications.