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In accounting for long-term construction contracts, the percentage-of-completion method is preferable to the completed contract method when: ; Z/ @/ K' D( Z4 C( m7 t7 m" |
A. the contracts are of a relatively short duration (less than one year).
4 d7 `8 Z* l1 z/ ^0 t) Q4 o4 oB. estimates of the costs to complete and the extent of progress toward completion are reasonably dependable.2 |% L8 o: E9 U& X4 o/ N5 T7 ~
C. lack of dependable cost estimates cause forecasts to be doubtful.& m2 f7 r U, d" l; Z2 p; Z& a
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