Cost accounting primarily recognizes revenue when:

In cost accounting, revenue recognition occurs when it is earned. This principle aligns with generally accepted accounting principles (GAAP), which state that revenue should be recognized when it is realizable and earned, regardless of when cash is received. Recognizing revenue when it is earned reflects the company's true financial performance and ensures that financial statements depict the actual economic activities that have occurred.

When revenue is recognized upon earning, it may involve the completion of a sale or the delivery of goods and services to customers. This method provides a more accurate representation of a company's profitability and overall financial health, as it takes into account transactions that have been completed rather than merely cash flows.

Recognizing revenue only when it is received, billed to customers, or projected for future sales would not accurately represent the timing of when the revenue was actually earned and could mislead stakeholders regarding the company's operational effectiveness. By focusing on earned revenue, businesses can also comply with accounting standards, maintain consistency in reporting, and provide transparent financial information to investors and regulators.