Assuming BCC Uses the Percentage-Of-Completion Method of Revenue Recognition, the Gross

question 199

Multiple Choice

Assuming BCC uses the percentage-of-completion method of revenue recognition, the gross profit recognized in 2012 would be (rounded to the nearest thousand) :

• A)$33,000.
• B)$36,000.
• C)$69,000.
• D)$30,000.

---

Definitions:

Net Markdowns

Net markdowns represent the reduction in the selling price of goods or products, often reflecting changes in market demand or stock clearance needs, net of any markdown cancellations.

Ending Inventory's Valuation

The process of assigning value to the inventory that is still on hand at the end of an accounting period.

Retail Inventory Method

An accounting method used by retailers to estimate their inventory's ending value by using a cost to retail price ratio.

Cost Flow Assumptions

An accounting method that determines the cost of goods sold and ending inventory based on the presumed flow of inventory costs.