Chapter 18, Problem 36Q

To determine

Cost-to-cost method: It is the method used to determine what percentage of work is completed and this helps to determine the revenue to be recognized over the accounting period.

Units-of-delivery method: It is a method used for long- term manufacturing contract. The progress of the project under this method is determined by the number or percentage of units delivered to the buyer against the total number of units mentioned in the contract.

To determine the methods used in practice to determine the extent of progress toward completion and also identify some “input measures” and some “output measures.”