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In accounting for long-term construction contracts, the percentage-of-completion method is preferable to the completed contract method when:
4 E4 G# x5 [5 M, u( P% Q' RA. the contracts are of a relatively short duration (less than one year). * I! ^; g7 P! z0 k
B. estimates of the costs to complete and the extent of progress toward completion are reasonably dependable.7 u/ j* O7 P9 f/ d8 Q8 P/ O
C. lack of dependable cost estimates cause forecasts to be doubtful.7 P: j' K s8 j: u9 N
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