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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 D$ k+ |; ~ x
A. the contracts are of a relatively short duration (less than one year).
# _# o" B; b$ uB. estimates of the costs to complete and the extent of progress toward completion are reasonably dependable.
0 b/ w; H* |* E- ~' aC. lack of dependable cost estimates cause forecasts to be doubtful.! w# Z G$ L( A: h/ l$ r' S
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