What is a cost that can be incurred with regard to the generation of revenue from contracts with customers?

Question

Quizplus · Accepted Answer

Both options A and B are correct. Incremental costs of obtaining a contract and costs incurred to fulfill a contract can both be considered costs related to generating revenue from contracts with customers. Incremental costs of obtaining a contract may include sales commissions, fees for legal review of contracts, and costs for preparing proposals. Costs incurred to fulfill a contract may include direct labor, materials, and overhead costs associated with producing and delivering goods or services to the customer.

What Is a Cost That Can Be Incurred with Regard