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One of the more popular input measures used to determine the progress toward

completion in the percentage-of-completion method is
a. revenue-percentage basis.
b. cost-percentage basis.
c. progress completion basis.
d. cost-to-cost basis.

1 Answer

4 votes

Final answer:

The revenue-percentage basis is a popular input measure used in the percentage-of-completion method to determine progress toward completion. Therefore, the correct option is A.

Step-by-step explanation:

The more popular input measure used to determine progress toward completion in the percentage-of-completion method is the revenue-percentage basis. This method looks at the percentage of revenue earned compared to the total expected revenue for a project. By tracking revenue, it provides a more accurate measure of progress. For example, if a construction project is expected to generate $1 million in revenue and has already earned $500,000, the completion percentage would be 50%. Other input measures, such as cost-percentage basis, progress completion basis, and cost-to-cost basis, may also be used, but the revenue-percentage basis is one of the more popular choices in the percentage-of-completion method.

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