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In accounting for long-term construction contracts, the percentage-of-completion method is preferable to the completed contract method when:
: @# \& Y j% z) a4 N8 iA. the contracts are of a relatively short duration (less than one year).
" `3 r+ _3 u4 g9 A; U' KB. estimates of the costs to complete and the extent of progress toward completion are reasonably dependable.1 z8 y3 W6 W: z8 O( S" F- s1 R1 e" u
C. lack of dependable cost estimates cause forecasts to be doubtful.
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