Use of the percentage-of-completion method is dependent on a firm's ability to make dependable forecasts of future costs.

Name: Use of the percentage-of-completion method is dependent on a firm's ability to make dependable forecasts of future costs.
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The percentage-of-completion method relies on forecasting future costs and progress to estimate revenue recognition, so it is important for the firm to have reliable cost projections in order to use this accounting method effectively.

Use of the Percentage-Of-Completion Method Is Dependent on a Firm's