# Literature review of percentage of completion

22:13
516
Thursday, April 15, 2021
25%

457 Voices

Once upon a time, contractors essentially chose between a contract-complete method or a percentage-of-completion method for recording revenue. More recently, the new ASC revenue recognition standards have ushered many changes and raised as many questions. Topic provides two acceptable methods for revenue from construction contracts: completed contract or percentage of completion. Where reliable estimates are possible, ASC recommends that contractors use the percentage-of-completion method.

## Percentage of Completion Method Definition

Percentage of completion method is a basis for revenue recognition in long-term construction contracts which span over more than one accounting periods. In case of long-term contracts, accountants need a basis to apportion the total contract revenue between the multiple accounting periods. Percentage of completion method provides one of those bases, other being full-contract method. It determines revenue recognized in one accounting period in accordance with the following formula:.

### Percentage-of-completion method

FLEXIBLE BUDGET A flexible budget, which is also known as variable budget as the name typifies flexes for alteration in the volume of operations and it is calculated using the actual activity level for a particular period not the budgeted sales multiplied by the standard cost per unit. It uses the incomes and expenses generated in the recent production as a baseline and measures how the income and expenditures will vary based on the changes in the output. In addition, it is established after a period to foretell both the successful and the unsuccessful areas for the forthcoming accounting period. My Accounting Course, n. To accomplish this in the real world, the managers carefully identifies the fixed and the variable cost and then compares.
The percentage of completion method is an accounting method in which the revenues and expenses of long-term contracts are recognized as a percentage of the work completed during the period. This is in contrast to the completed contract method , which defers the reporting of income and expenses until a project is completed. The percentage-of-completion method of accounting is common for the construction industry, but companies in other sectors also use the method.
Category: albert camus
Topic сomments

(12)

Austin D. l. T.

16.04.2021

This was a great start to the creative writing specialization! The videos only took up about 30 minutes per week and most of the time was focused on writing and doing peer reviews.

Michael A.

17.04.2021

It was so meticulously created, I didnt have to ask for any revision, editing or proofreading later because it was accepted by my supervisor in the first time.

Austin M.

18.04.2021

I would never think that someone can do in such a short time such a scientific candy.

Danding R.

19.04.2021

Even though the story for my narrative essay is completely made up, it fits the prompt just well and the topic is illustrated clearly.

Bob H.

19.04.2021

They helped me to re-write my dissertation from French to English.

Brandon M.

20.04.2021

After three goes I gave up and paid to have it done for me.

Alex S.

20.04.2021

Pretty good

Arturo S.

21.04.2021

In fact, I placed a second order with the same writer.

Reggie P.

21.04.2021

Many thanks Educibly for helping me with my paper.

Abimael H.

22.04.2021

you did a great job on my paper.

Josobeam C.

24.04.2021

But honestly, since I tried out EssayMama, I got hooked! Plus the fact that I can actually afford to pay without feeling like Ive been robbed, its a TOTAL PLUS!

Branden S.

24.04.2021

Your prices are a bit too high for me but I prefer to order from you because of well you treat your customers.

Comment on the essay:
Research Paper from category

Related Essays Trending Now

henrigougaud.info