Extended time of completion of the project and accurate measurement of its progress towards completion are the only attributes necessary for the appropriate utilization of the percentage-of-completion method of revenue recognition.

Question

Quizplus · Accepted Answer

The percentage-of-completion method also requires the ability to reasonably estimate total project costs and the extent of progress towards completion. Therefore, accurate cost estimation and progress measurement are also important attributes for the appropriate utilization of this method.

Extended Time of Completion of the Project and Accurate Measurement