Explanation:

Cost Recovery Method is one of revenue recognition methods in which the company does not record gross profit or income generated against the goods that are sold to the customer until the total cost element related to the respective sale have been received fully by the company from the customer and after whole cost amount has been received, remaining amount will be recorded as an income.
According to the cost recovery method, the company will not record the gross profit
 or the income generated against the goods that are sold to the customer until the total cost element related to the respective sale has been received fully by the company from the customer. After the whole cost amount has been received, the remaining amount will be recorded as an income.