Where the percentage-of-completion method is based on costs,costs that relate to the contract activity generally and are not normally related to specific contracts,such as finance costs,should be allocated across the projects currently in progress.

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Under the percentage-of-completion method, costs that are general and administrative in nature or cannot be directly linked to a specific contract, such as finance costs, are typically not allocated to individual projects but are expensed as incurred.

Where the Percentage-Of-Completion Method Is Based on Costs,costs That Relate