ALL about Cost Recovery Method

Summary, forum, best practices, expert tips and information sources.

All about Cost Recovery Method and other management methods. Completely free.

What is the Cost Recovery Method? Meaning.

The Cost Recovery Method is one of several Revenue Recognition approaches under U.S. GAAP, in which revenue is recognized subsequently to the sale.

When collections on installment sales occur over an extended period and no reasonable basis for estimating collectability exists, U.S. GAAP allows companies to use the cost recovery method for recognizing profits on such sales.

Under this method, no profit is recognized until cash collections from the buyer exceed the seller's cost of goods sold. After the cost of the merchandise has been recovered, any cash collected in excess of this amount is recorded as recognized gross profit in the seller's income statement.

For example, if a company sold a machine worth $20,000 for $30,000, it can start recognizing profit only after the buyer has paid more than $20,000.

Cost Recovery Method Special Interest Group

Special Interest Group (6 members)

Forum about Cost Recovery Method

The most recent topics about: Cost Recovery Method.

🔥	NEW Quotes on Cost Recovery. Quotations Hi, do you know of a remarkable, humorous quote by a famous person or a proverb related to (cost) recovery?Please enter (...) 5 1 reactions

Best Practices about Cost Recovery Method

Here you will find the most valuable ideas and practical suggestions.

Expert Tips about Cost Recovery Method

Here you will find professional advices by experts.

Information Sources about Cost Recovery Method

Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.

Special Interest Group Leader

Are you an expert in Cost Recovery Method? Sign up for free

Link to this knowledge center

Copy this code to your web site:

This ends our Cost Recovery Method summary and forum.