The rationale for adoption of the percentage-of-completion method is that:

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The percentage-of-completion method provides a measure of periodic accomplishment as it recognizes the revenue and expenses in proportion to the degree of completion of the project. This method is useful when long-term projects are undertaken, and it helps in ascertaining the actual cost and revenue of the project at any given point in time. While the method may also result in more conservative results compared to other methods, it is not the primary rationale for its adoption. The method may or may not align with legal ownership and does not impact income taxes directly.

The Rationale for Adoption of the Percentage-Of-Completion Method Is That