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.