What Are Some Ways in Which Earnings Management on Construction

What are some ways in which earnings management on construction contracts can be minimized?

A) Determining the degree of completion in a manner that best represents the underlying performance of the project.
B) Judiciously making estimates for the cost-to-cost approach that maximize earnings in the current year.
C) Underestimating future costs.
D) Not using engineering estimates or the cost-to-cost approach.

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