Revenue may be recognized during production in which of the following types of business?
A) retail sales
B) manufacturing for mass-production
C) construction
D) franchise operations

Question

Quizplus · Accepted Answer

Revenue can be recognized during production in businesses such as construction, where long-term contracts are common and revenue recognition is based on the percentage of completion method. In retail sales, revenue is recognized at the point of sale, and in manufacturing for mass-production, revenue is recognized when the finished product is sold. Franchise operations typically generate revenue through franchise fees and royalties, which are recognized over time as they are earned.

Revenue May Be Recognized During Production in Which of the Following