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In accounting for long-term construction contracts, the percentage-of-completion method is preferable to the completed contract method when: ' K" t8 N6 j: \6 G$ M5 \8 W
A. the contracts are of a relatively short duration (less than one year).
' g$ y E$ |+ J `# [B. estimates of the costs to complete and the extent of progress toward completion are reasonably dependable.: N2 u$ |9 j5 d% R+ B" {
C. lack of dependable cost estimates cause forecasts to be doubtful.8 l. `, D2 h' T( L
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