The criteria for recognition of revenue at the completion of production of precious metals and farm products include
A) an established market with quoted prices.
B) low additional costs of completion and selling.
C) units are interchangeable.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

All of these criteria must be met in order to recognize revenue at completion of production for precious metals and farm products. An established market with quoted prices is necessary to determine the fair value of the products. Low additional costs of completion and selling ensure that the majority of the revenue will be recognized at the time of completion. Interchangeability of units ensures that the products are similar enough to allow for a fair representation of value.

The Criteria for Recognition of Revenue at the Completion of Production