What information is necessary to use the percentage-of-completion method?

Question

Quizplus · Accepted Answer

The percentage-of-completion method requires the actual costs to date and estimates of the total costs and total revenues in order to calculate the percentage of completion and recognize revenue accordingly. Option A is not sufficient as it only provides an estimate of total costs without any information on the actual costs incurred. Option B only provides partial information and does not include estimated total revenues. Option C provides information on estimated revenues but not estimated total costs. Therefore, option D is the best choice as it includes all the necessary information for using the percentage-of-completion method.

What Information Is Necessary to Use the Percentage-Of-Completion Method