1. Fixed Price Contract
2. Cost Plus Contract = reimburse costs plus a percentage of profit
Methods of Construction Accounting
A. Percentage of Completion
B. Cost Recovery Method/Hybrid/Zero-Profit Approach = recognize all costs before any profit.
Tuesday, February 4, 2014
Lesson 5 P2: Construction Accounting - Notes
Construction Contracts
1. Fixed Price Contract
2. Cost Plus Contract = reimburse costs plus a percentage of profit
Methods of Construction Accounting
A. Percentage of Completion
*If computation for Estimated Gross Profit turns out to be a loss, recognize the loss 100% as a Loss earned this year.
B. Cost Recovery Method/Hybrid/Zero-Profit Approach = recognize all costs before any profit.
1. Fixed Price Contract
2. Cost Plus Contract = reimburse costs plus a percentage of profit
Methods of Construction Accounting
A. Percentage of Completion
B. Cost Recovery Method/Hybrid/Zero-Profit Approach = recognize all costs before any profit.
Subscribe to:
Post Comments (Atom)
Thanks for one marvelous posting! I would like to see your updates regularly so keep blogging.CFA Audit
ReplyDeleteWarehouse Audit
Fixed Assets Audit
That is extremely fascinating; you are an exceptionally talented blogger. I have shared your post to my frnds.Useful post.Keep in blogging. Duplicate Payment Review | AP Vendor Helpdesk | Duplicate Payment Recovery
ReplyDeleteThank you for digging up these oldies-but-goodies.
ReplyDeleteTax return services in Barking
Rate life sister pick help treatment. Government oil group network center. Hotel carry training activity create current anything maybe.health
ReplyDelete