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In accounting for long-term construction contracts, the percentage-of-completion method is preferable to the completed contract method when:
! T" C9 I( ~: hA. the contracts are of a relatively short duration (less than one year).
, q) N$ {6 } K/ _B. estimates of the costs to complete and the extent of progress toward completion are reasonably dependable.
' {& T3 n9 ^! E4 YC. lack of dependable cost estimates cause forecasts to be doubtful.
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