Question

1).

Revenue for goods to be sold under a consignment arrangement of a manufacturer and a retail store should be recognized by the manufacturer when: Multiple Choice the manufacturer delivers the product to a retall store. the seller promises to pay the manufacturer. the goods are sold by the retall store. the seller recelves payment for the goods.

2).

Answer 1

1.C. The goods are sold by the retail store.

under consignment sales the sales are to be recognised when the consignee sells the goods to the third party.

here, the manufacturer must recognise the sale, when retalier sells the goods.

2.d.uses an assumed reasonable profit margin to determine the stand alone price.

cost plus approach adds up all the costs and grosses it up with a markup percentage to determine the final price of contract.