The percentage-of-completion method measures the proportion of total work carried out during the accounting period either from engineers' estimates of the degree of completion or from the ratio of costs incurred to date to the total costs expected for the entire contract.

Question

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The statement is true. The percentage-of-completion method is a commonly used accounting method for long-term contracts and measures the proportion of total work completed during the accounting period. This measurement can be determined either from engineers' estimates of the degree of completion or from the ratio of costs incurred to date to the total costs expected for the entire contract.

The Percentage-Of-Completion Method Measures the Proportion of Total Work Carried