When recognizing revenue over time on a long-term contract, the percent complete is often estimated by comparing the cost incurred to date with the total estimated cost to complete.

Question

Quizplus · Accepted Answer

This is true. The cost-to-cost method is a common way to estimate the percentage of completion for revenue recognition purposes. It involves dividing the total costs incurred to date by the estimated total costs for the entire project. The resulting percentage is used to determine the amount of revenue that can be recognized for the project at that point in time.

When Recognizing Revenue Over Time on a Long-Term Contract, the Percent