At What Point Would You Expect Revenue from Sales of Software

question 48

Multiple Choice

At what point would you expect revenue from sales of software by a computer store to be recognised?

• A) During production
• B) On completion of production
• C) At point of sale or delivery
• D) When cash is received

---

Definitions:

Actual Costs

Actual costs are the expenses that a company incurs for producing goods or services, including materials, labor, and overhead, as opposed to estimated or budgeted costs.

Standard Costs

The predetermined costs of manufacturing a product or providing a service, used as benchmarks against actual costs.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit of material.

Malfunctioning Equipment

Equipment that is not operating correctly or as expected, often leading to operational inefficiencies or safety concerns.