Which of the following statements about completed contract method is incorrect?

Question options:

Under completed contract with absorption$,$ the operating expense is treated as a product cost.

Under completed contract method, a project is recognized as substantially complete when the facility under construction can be used for its intended purpose.

Under completed contract method, there is no periodic recognition of results reflecting the progress of the project toward completion.

Under completed contract without absorption$,$ the monthly operating expense is not recognized when the project is not substantially complete.