Under the cost-recovery method
A)revenue, cost, and gross profit are recognized during the production cycle.
B)revenue and cost are recognized during the production cycle, but gross profit recognition is deferred until the contract is completed.
C)revenue, cost, and gross profit are recognized at the time the contract is completed.
D)None of these answers are correct.

Question

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The Answer of Under the cost-recovery method
A)revenue, cost, and gross profit are recognized during the production cycle.
B)revenue and cost are recognized during the production cycle, but gross profit recognition is deferred until the contract is completed.
C)revenue, cost, and gross profit are recognized at the time the contract is completed.
D)None of these answers are correct.

Under the Cost-Recovery Method