单选题 When a reliable estimate of costs exists, ultimate payment is assured, and revenue is earned as costs are incurred. Which of the following revenue recognition methods should be used?

A. Installment sales method.
B. Cost recovery method.
C. Percentage-of-completion method.

【正确答案】 C

【答案解析】The installment sales method recognizes revenue and associated cost of goods sold only when cash is received. Gross profit (sales-cost of goods sold) reflects the proportion of cash received. The cost recovery method is similar to the installment sales method but is more conservative. Sales are recognized when cash is received, but no gross profit is recognized until all of the cost of goods sold is collected.