Smith sells computer software to Miller that requires significant construction.When recognizing revenue, Smith

A) allocates the associated discounts to all the customization efforts, including upgrades
B) can use percentage of completion to recognize revenue
C) can recognize revenue upon delivery of the software
D) must use the fair value of the software delivered in determining realizable revenue

Revenue Recognition

The accounting standard that identifies the exact circumstances where revenue is considered or documented.

Percentage of Completion

Percentage of completion is an accounting method used to recognize revenue and expenses of long-term projects proportionally to the work completed.

Realizable Revenue

The amount of revenue that is considered to be collectible from goods sold or services rendered.