Simply Manufacturers has signed an order to supply $10,000$ chairs at a price to be determined sixty days after delivery. Payment is due at that time. The price per chair may range from $$0$ to $$100$ depending on a series of events, the outcome of which cannot be accurately predicted. Which of the following factors is most likely to precludes Simply from recognizing revenue at time of delivery.

Question $15$ Answer

a$.$

The revenue is variable in nature.

b$.$

The purchaser is not obligated to pay for the goods at time of delivery.

c$.$

Simply had not paid its suppliers for the materials used to manufacture the chairs.

d$.$

The purchaser bears the significant risks and rewards of ownership.