Discuss the difference in volatility

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Reference no: EM131522632

Question: [Eating's - volatility percentage-of-completion versus completed contract; CFA C adapted]

a. Compare the volatility of reported earnings over the life of a contract of both the completed contract and percentage of-completion accounting methods.

b. Discuss the difference in volatility when a firm has many connects.

c. Discuss how the volatility discussed in parts A and B impacts the awfulness of the information provided by the statement of each flows.

Reference no: EM131522632

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