The criteria for recognition of revenue at completion of production of precious metals and farm products include:
A) an established market with quoted prices.
B) low additional costs of completion and selling.
C) units of production are interchangeable.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

All of the criteria listed are relevant for recognizing revenue at completion of production of precious metals and farm products. An established market with quoted prices provides a reliable basis for determining the fair value of the product. Low additional costs of completion and selling means that there is minimal uncertainty around the total cost of producing the product. Units of production that are interchangeable means that there is no significant difference in value or quality between individual units, making it easier to price and sell the entire production.

The Criteria for Recognition of Revenue at Completion of Production