CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Under the percentage-of-completion method, ______
A. billings on construction contract are used in determining the percentage of the project completed to date.
B. accumulated construction costs can be used in determining the percentage of the project completed to date.
C. accumulated construction costs can be used in determining the percentage of the project completed in the current year.
Explanation: To use the percentage-of completion method, the firm must be able to estimate the portion of the contract that has been completed. One way to do this is to use the actual costs that have been incurred to date.

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