Answered

Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Discover comprehensive solutions to your questions from a wide network of experts on our user-friendly platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

For a construction contract where the company uses the percentage of completion method and there is a change in the estimated total cost of the contract from $12 million to $13 million, the accountant should do the following:
A. Compute the percentage completed using the new cost total if the company uses the cost ratio to estimate percentage completed.
B. Use estimated costs determined at the beginning of the contract, not actual costs to date.
C. Use retrospective treatment.
D. Change the Opening Retained Earnings.

Sagot :

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.