Accounting Analysis:

Title Operating Expenses:

Answer the following questions related to operating expenses:

1) How are the operating expenses (not included in the cost of goods sold) handled under the installment-sales method of accounting?

2) How are they included in the percent-of-completion method?

3) How are operating expenses handled under the completed contract method?

4) Of these methods, provide examples of situations when each method will be the most appropriate.