Under this method, if the question asks the amount of revenue in year 2, does it mean year 2 ONLY or cumulated revenue (yr 1+ yr 2)?
I saw a question picked cumulated revunue. Bit confused.
Thanks.
Revenues have been stated on a year by year basis in every question I’ve come across so far.
For this method, you take the costs incurred in the period (year 2), and divide by total costs. That is the percantage completed in that period. Take that percentage and multiply by the cost of the project and you have your revenue for the period.
If this doesn’t work, I’d like to see the question.
Ah, I punched the calculator wrong and confused myself.
Thank you.