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a) Compute the revenue, expense, and income for both 2019 and 2020, and for both years combined, under the companys cost-to-cost revenue recognition method. Revenue
a) | Compute the revenue, expense, and income for both 2019 and 2020, and for both years combined, under the companys cost-to-cost revenue recognition method. | ||||||||||
Revenue to be recognized : | million | ||||||||||
($ millions) | Cost-to-Cost Reveneu Method | ||||||||||
Year | Costs incurred | Percent of total expected costs | Revenue recognized (percentage of costs incurred total contract amount) | Income (revenue - costs incurred) | |||||||
2019 | |||||||||||
2020 | |||||||||||
Total | |||||||||||
b) | Discuss whether or not we believe the cost-to-cost method provides a good measure of the companys performance under the contract | ||||||||||
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