Question: Which statement is correct about the impact of estimation errors on construction contracts? A. Overestimating future costs increases the percentage complete ratio. B. Underestimating future

Which statement is correct about the impact of estimation errors on construction contracts?

A.

Overestimating future costs increases the percentage complete ratio.

B.

Underestimating future costs increases the profit recognized in the current period.

C.

Underestimating future costs increases the profit recognized in future periods.

D.

Underestimating future costs decreases the percentage complete ratio.

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