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What is cost to cost?
It is a type of estimate of completion used in construction contracts. It is the ratio of costs incurred by a given date which is divided by the estimated total project cost.
What is cost ratio calculated by?
Cost Ratio = expenses/earnings
What are cost-reimbursement contracts?
In cost-reimbursement contracts, builders were paid for justifiable costs incurred during the project, while fixed-price contracts required builders to absorb any cost overruns themselves.
What is the formula for beverage cost ratio?
formula for beverage cost ratio
Who do you get percentage of loss to ratio?
% loss = ((selling price - cost)/cost x 100 Ratio of loss to cost? (selling price - cost)/cost
What is High-low method of variable cost and fixed cost?
High and low method is the method for separating fixed cost and variable cost from mixed cost.
Is post costing as a method of ascertainment of costs?
Yes it is!! Post costing, means analysis of actual information as recorded in financial books. It is accurate and is useful in the case of cost plus contracts, where price is to be determined finally on the basis of actual cost.
What year did cost plus contracts begin?
1999
Discuss the merits of the alternative methods of measuring percentage of completion under long term construction contracts?
i know guys u got Assigement The two alternative methods of measuring the percentage of completion are: - The cost-ratio method - The effort-expended method Many other techniques will be found in practice, including combinations of the above, or the application of these methods to different phases and cost codes of the same contract. The principal advantages of the percentage-of-completion method are the accurate reporting of the status of the uncompleted contracts and the periodic recognition of income currently (rather than irregularly) as contracts are completed. There are some other merits of the alternative methods of measuring percentage of completion under long term construction contracts as follows: 1. Current status of performance and revenue: contract revenues are recorded based upon measure of progress appropriate for the nature of the work performed. Say for example: Unbilled receivable will of course have a positive impact on income. 2. Quality -of -Earning issues for long term contracts: This method provides management with appropriate opportunities to manage reported earnings. To avoid underestimate or overestimate expenses it also provides a batter measure of firm's value added for the period
How revenue is treated under long-term contract?
Revenue is calculated as per percentage of completion method in long term contracts like construction contracts as first of all total cost and revenue is determined and after that it is allocated to specific fiscal year according to the percentage of completion of contract or project
What is the Average Cost method of inventory valuation?
Average Cost Method: Under this method average cost is calculated by following farmula:Average cost of unit= Total cost of inventory / total number of units
How do calculate break even point?
Break even point = Fixed cost / Contribution margin ratio Contribution margin ratio = (sales - variable cost ) / Sales
