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In accounting for long-term construction contracts, the percentage-of-completion method is preferable to the completed contract method when:
4 J, @: U# y) K! UA. the contracts are of a relatively short duration (less than one year). ( S7 d% C+ [1 e ]5 ^% P
B. estimates of the costs to complete and the extent of progress toward completion are reasonably dependable.& P2 G2 ]; ? }
C. lack of dependable cost estimates cause forecasts to be doubtful.2 P$ e* f9 L6 ?& d
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