0
What is the cost in excess of billing in long term construction contracts?
Wiki User
∙ 15y ago
Cost in Excess of Billing is an Asset Account that means the contract is under-billed. Actual billings are less than Revenue Earned.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
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 the difference between unbilled receivables and cost in excess of billings?
Unbilled receivables represent costs in excess of billings on incomplete contracts and, where applicable, accrued profit related to government long-term contracts on which revenue has been recognized, but for which the customer has not yet been billed.
What must be included in construction contracts?
Construction contacts are quite complicated. However, one should ensure they have the cost of the contract, the payment options, the terms and conditions set between the parties, etc.
What is Billings in excess of costs?
I am not an accountant; but I work with Billings in excess of costs. Billings in excess of cost is a product of estimating allocated cost and direct cost of a construction contract. This is used in Percentage of Completion basis of financial statement preperation. Billings in excess is liability; Cost in excess of Billings is an asset. An example: Total Contract: $1,000,000. Estimated Cost is $900,000; Estimated Profit is $100,000. You start working the job, at year end you have the following Contract $1,000,000; Total Estimated cost: $900,000; Actual Cost to Date: $450,000; Billings to Date are $600,000; so: 450/900=50% X $1,000,000= $500,000 Earned to date; $500,000 Earned to date - $600,000 Billings to date = $100,000 Billings in Excess of Cost. If you only had $400,000 in Billings to date it would be: $500,000 - $400,000= $100,000 Cost is excess of Billling . Actual Cost to Date / Estimated Cost X Contract Amount = Earned to Date - Billed to Date = (if negative number = Billings in Excess of Costs) (if positive number = Cost in Excess of Billings) Billings in Excess of Costs is a balance sheet liability Cost in Excess of Billings is a balance sheet asset
What has the author S D Anderson written?
S. D. Anderson has written: 'Procedures guide for right-of-way cost estimation and cost management' -- subject(s): Roads, Right of way, Costs, Highway planning, Estimates 'Constructibility review process for transportation facilities' -- subject(s): Road construction contracts 'Guidelines for warranty, multi-parameter, and best value contracting' -- subject(s): Warranty, Value analysis (Cost control), Road construction contracts
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 was the cost construction of fenway park?
cost of construction was $650,000 dollars
What was the construction cost of Baker Bowl?
cost of construction was $80,000 dollars
How much do rock crushers cost?
Rock crushers are a very expensive piece of machinery used in construction. They can cost in excess of over twenty thousand dollars and so it is wise to shop around to find a good deal.
What has the author Donn E Hancher written?
Donn E. Hancher has written: 'Mathematical model of aggregate plant production' -- subject(s): Sand and gravel plants, Design and construction, Mathematical models, Data processing 'Submittal of bid proposals in electronic format' -- subject(s): Data processing, Road construction contracts, Letting of contracts, Electronic data interchange 'Improved workers' compensation management in construction' -- subject(s): Workers' compensation, Construction industry, Cost control, Insurance
Where can construction cost estimating software be bought?
You can buy construction cost estimating software on eBay. Construction Book Express also has many different types of construction cost estimating software to buy.
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
