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

Question

Quizplus · Accepted Answer

Under the completed contract method, revenue, cost, and gross profit are recognized at the time the contract is completed. This method defers recognition of revenue and cost until the completion of the contract. This means that no revenue, cost, or gross profit is recognized during the production cycle.

Under the Completed Contract Method