The percentage-of-completion method
A)recognizes revenue and gross profit each period based upon progress.
B)is used primarily for short-term contracts.
C)accumulates construction costs in the Billings on Construction in Progress account.
D)recognizes revenue and gross profits only when contract is completed.

Question

Quizplus · Accepted Answer

The percentage-of-completion method recognizes revenue and gross profit each period based upon the progress of the construction, typically measured by the costs incurred to date as a percentage of total estimated costs.

The Percentage-Of-Completion Method