单选题

The calculation of the income recognized in the third year of a five-year construction contract accounted for using the percentage-of-completion method includes the ratio of（）。

A、 costs incurred in year 3 to total estimated costs.
B、 total costs incurred to date to total billings to date.
C、 total costs incurred to total estimated cost.

【正确答案】 B

【答案解析】

The percentage of completion method recognizes revenues in proportion to the proportion of expenses incurred.