It is more difficult to manipulate construction contracts that use the percentage of completion method than contracts that use the completed contract method.

Question

Quizplus · Accepted Answer

The percentage of completion method involves recognizing revenue and expenses as a project progresses, which requires estimates of costs and project completion, potentially allowing for more subjective judgment and manipulation. The completed contract method defers all revenue and expense recognition until a project is complete, offering fewer opportunities for manipulation through estimates during the project.

It Is More Difficult to Manipulate Construction Contracts That Use