In selecting an accounting method for a newly contracted long$-$term construction project, the principal factor to be considered should be

Question $12$ options:

$1)$

the terms of payment in the contract.

$2)$

the degree to which a reliable estimate of the costs to complete and extent of progress toward completion is practicable.

$3)$

the method commonly used by the contractor to account for other long$-$term construction contracts.

$4)$

the inherent nature of the contractor's technical facilities used in construction.