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In accounting for long-term construction contracts, the percentage-of-completion method is preferable to the completed contract method when:
, G5 l# ~) E* `2 OA. the contracts are of a relatively short duration (less than one year). ; Z" s% c6 B4 E+ Q' R
B. estimates of the costs to complete and the extent of progress toward completion are reasonably dependable.- b& X4 H: A( U3 v" e, i
C. lack of dependable cost estimates cause forecasts to be doubtful.* H, c8 O6 o7 \" I8 O
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