Question
BMWagrees to sell Joe Customer a new BMW 650i for $85,000 on December 4, 2012 through one of its company-owned dealerships. The cost to BMW
BMWagrees to sell Joe Customer a new BMW 650i for $85,000 on December 4, 2012 through one of its company-owned dealerships. The cost to BMW to produce the car is $60,000. Because of the highly specified nature of the options requested by this customer, BMW must build the car from scratch, a process that will take 8 weeks. BMW anticipates delivering the vehicle on February 1, 2013.
Under current GAAP, how much revenue should BMW recognize in 2012 and 2013?
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Global Strategy
Authors: Mike W. Peng
5th Edition
0357512367, 978-0357512364
