M3 Revenue Recognition: Part 1

Question 1

Discount in a contract

Answer 1

Allocate proportionally across all obligations within the contract

Question 2

Bill and Hold

Answer 2

Recognize revenue when the product is delivered to the customer, ensures performance obligation is met

Question 3

Output method to recognize revenue

Answer 3

Milestones achieved whether production or distribution related

Question 4

Input method to recognize revenue

Answer 4

Resource consumption, labor hours expended, and costs incurred relative to total expected costs