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In accounting for long-term construction contracts, the percentage-of-completion method is preferable to the completed contract method when: 8 G1 P2 O7 ?: T& Z
A. the contracts are of a relatively short duration (less than one year).
/ \2 o' ]8 m/ P) CB. estimates of the costs to complete and the extent of progress toward completion are reasonably dependable.2 v4 J4 t9 B: U% l' C! L9 n3 H
C. lack of dependable cost estimates cause forecasts to be doubtful.
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