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In accounting for long-term construction contracts, the percentage-of-completion method is preferable to the completed contract method when: ( W9 O( S% C* h/ D( S% R# c- j
A. the contracts are of a relatively short duration (less than one year). ; w e, R" T* l. f+ j. _
B. estimates of the costs to complete and the extent of progress toward completion are reasonably dependable.
# Y1 G' o: [# e NC. lack of dependable cost estimates cause forecasts to be doubtful.
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