Assume Sanjeev estimates variable consideration as the expected value.What is the amount of revenue Sanjeev would recognize for the first month of the contract?

Question

Quizplus · Accepted Answer

The expected value method involves calculating the sum of probability-weighted amounts in a range of possible consideration amounts. If Sanjeev estimates the expected value to be $1,400, then that is the amount of revenue he would recognize for the first month.

Assume Sanjeev Estimates Variable Consideration as the Expected Value