Donald Company, which operates in the life sciences industry, routinely fulfills services subject to ongoing negotiations that determine reimbursement of regulated rates. Donald properly applies the variable revenue guidance under ASC 606. Donald should:

Multiple Choice

• recognize revenue over time.

• recognize revenue at the inception of the related contract.

• defer revenue until the reimbursement rate can be estimated with 90% certainty.

• defer revenue until the reimbursement rate is fixed.

Petroleum, pharmaceutical, chemical, and other large manufacturing companies are more likely to use this inventory cost flow assumption, than companies operating in other industries.

Multiple Choice

• LIFO

• Weighted-average

• LCM

• FIFO