Questions $46$ through $48$ relate to the case below

Koninklijke Bam Group is a Dutch construction company focused on residential and non$-$residential construction, utilities and facility management among others. Its financial statements follow the IFRS. Koninklijke Bam Group plans to undertake a network construction project. The bid was $8,000,000$ and estimated costs to complete were $5,000,000.$ All of the $8,000,000$ will be paid in cash once the construction completes. The outcome of a contract can be measured reliably. The project takes two years to complete. In the first year, the total costs incurred were $3,000,000.$ In the second year, it incurred a cost of $2,500,000.$ In other words, there is a cost overrun in year $2.$

Question: The appropriate revenue recognition method for the network construction project should be $q,$

Select one:

a$.$ installment sales method

b$.$ percentage$-$of$-$completion method

c$.$ cost recovery method

d$.$ completed contract method