Which Statement About the Cost Recovery Method Is Correct

question 42

Multiple Choice

Which statement about the cost recovery method is correct?

• A)The method recognizes contract revenues on a cash basis.
• B)The method recognizes revenue and expenses in proportion to the degree of progress.
• C)This method recognizes defers any profit until the contract is completed.
• D)This method is the preferred method for recognizing revenue.

---

Definitions:

Control Chance Events

The attempt to influence or predict random or unpredictable occurrences through behavior or other means, often based on superstition or mistaken beliefs.

Depressed People

Individuals experiencing a mental health condition characterized by persistent feelings of sadness, loss, or anger.

Drinking Problem

A condition where an individual's consumption of alcohol causes harm to their health, social life, or both.

Under the Influence

This term refers to being under the effect of substances, like drugs or alcohol, which can alter one's cognition, mood, or behavior.