When estimating variable consideration, companies can use the expected value method or most likely amount method. Companies may pick the method that results in the lowest administrative cost.

		True
		False

The following steps below, which are listed in no particular order, relate to a merchandiser (Taylor Corp.) and a customer (Swift Co.).

The transaction price of a calculator manufactured by Taylor Corp. is determined to be $100.

A performance obligation is identified as the providing of one fully functioning calculator to Swift Co.

The $100 retail price of the calculator is fully allocated to the obligation of Taylor Corp. to provide a fully functioning calculator to Swift Co.

A contract is established through common business practices where Taylor Corp. provides a fully functioning calculator to Swift Co. for the listed retail price of $100.

Swift Co. takes possession of the calculator after providing his credit card as a means of payment of $100. At this point, Taylor Corp. recognizes revenue.

Put the below items in order of the five steps of the revenue recognition process.

		2, 4, 1, 3, 5
		2, 4, 1, 5, 3
		4, 2, 1, 5, 3
		4, 2, 1, 3, 5