The most popular input measure used to determine the progress toward completion in the event a company qualifies to recognize revenue over a period of time is
A) cost-benefit basis.
B) percentage-of-completion basis.
C) cost-to-cost basis.
D) collection basis.

Question

Quizplus · Accepted Answer

The most popular input measure used to determine the progress toward completion in the case of revenue recognition over a period of time is the cost-to-cost basis. This input measure entails comparing the actual costs incurred to date with the estimated total cost of the contract to determine the percentage of completion. This method is one of the most accurate and reliable ways to estimate the progress of a long-term project. The cost-benefit basis is not applicable in this context, while the percentage-of-completion basis and collection basis are less commonly used input measures.

The Most Popular Input Measure Used to Determine the Progress