When the cost basis is used to calculate the percentage of completion,cost items that may need adjustment include:
A) Discounts for the bulk purchase of construction materials.
B) Gains and losses on foreign currency translation.
C) Materials delivered and paid for, but not yet used.
D) Interest charges on late payments for materials and other items used in the construction project.
E) None of the given answers.

Question

Quizplus · Accepted Answer

Materials delivered and paid for, but not yet used, are a cost item that may need adjustment when the cost basis is used to calculate the percentage of completion.

When the Cost Basis Is Used to Calculate the Percentage