The criteria for recognition of revenue at 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.

Question

Quizplus · Accepted Answer

All of these criteria must be met for revenue recognition at completion of production of precious metals and farm products. An established market with quoted prices indicates that reliable estimates of revenue can be made. Low additional costs of completion and selling indicate that there are no significant uncertainties regarding the cost of completion or the selling price. Interchangeable units mean that the quality and quantity of the output are easily determinable, thus reducing the risk associated with revenue recognition.

The Criteria for Recognition of Revenue at Completion of Production