When may companies use the completed-contract method?
What will be an ideal response?
Answer: Companies are restricted and may only use the completed contract method when a company does not meet the criteria to use the percentage of completion method. This is especially true when it is not possible to make reasonable estimates of the progress on a contract throughout its duration.
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A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores. The business is an example of a(n) ________
A) independent intermediary B) manufacturer-owned intermediary C) disintermediator D) reverse marketer E) brokerage company
Which of the following conditions can be detected from residual analysis?
A) Nonlinearity Nonconstant variance B) Multicollinearity C) A and B D) A, B, and C