To recognize revenue upon completion of production,the product must be immediately saleable at quoted market prices,no significant uncertainty exists regarding cost of distributing the product,and

Question

Quizplus · Accepted Answer

Recognizing revenue upon completion of production requires that the units produced are homogeneous, which means they are identical or very similar in nature. This allows for quoted market prices to be established without significant uncertainty. If the units are not homogeneous, it may be difficult to determine the appropriate price and there may be significant uncertainty over the cost of distributing the products. Therefore, choice B is correct while the other choices are not relevant to the criteria for recognizing revenue upon completion of production.

To Recognize Revenue Upon Completion of Production,the Product Must Be