Conceptual Framework Underlying Financial Accounting 2 - 29Ex. 2-140—Revenue recognition. Revenue is generally recognized at the point of sale. There are three exceptions, however. Name the time for each exception, give two qualifications or criteria for the use of each exception, and give an example for each exception. Solution 2-140 1. During production. The revenue is known (contract) or dependably estimable. Total costs are estimable or other means are available to estimate progress toward completion. Examples are long-term construction contracts and service-type transactions. 2. At completion. There are quoted prices. Units are interchangeable. There are no significant distribution costs. Examples are precious metals or agricultural products. 3. At collection. There is no reasonable basis for estimating the degree of collectibility. Costs of collection, bad debts, and repossessions are not estimable. Examples are installment sales and cost recovery method.