Look-Back Interest May Be Required on Long-Term Contracts If Actual

Multiple Choice

Look-back interest may be required on long-term contracts if actual total costs had been employed in determining gross profit rather than estimated costs in earlier years of the contract.The interest will not be assessed if

A) the completed contract method is used.
B) the contract is completed within two years of the commencement date.
C) the contract price is less than $1 million.
D) All of the above are correct.