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In accounting for long-term construction contracts, the percentage-of-completion method is preferable to the completed contract method when: , J9 e. e5 b4 l7 x8 m# G
A. the contracts are of a relatively short duration (less than one year).
9 v: I# f5 j" g- B! N* r$ dB. estimates of the costs to complete and the extent of progress toward completion are reasonably dependable.+ B1 K: u2 G5 t
C. lack of dependable cost estimates cause forecasts to be doubtful.
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