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Discuss the merits of the alternative methods of measuring percentage of completion under long term construction contracts?
Wiki User
∙ 16y ago
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
Wiki User
∙ 16y ago
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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 Percentage of completion method in construction company?
An accounting method used for long-term construction contracts that recognizes revenues and related expenses before they occur based on an input or output measure of the earning process.
What has the author Edward Whitticks written?
Edward Whitticks has written: 'Construction contracts' -- subject(s): Construction contracts, Construction industry, Engineering contracts, Petroleum industry and trade 'Field manual for oil and gas construction contracts management' -- subject(s): Construction contracts, Letting of contracts, Petroleum law and legislation
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.
Warranty shall survive and not merge on completion?
This means that the warranty provided remains valid and enforceable even after the completion of the transaction. The terms of the warranty will continue to be relevant and binding, separate from any other agreements made during the transaction.
What has the author Judah Lifschitz written?
Judah Lifschitz has written: 'Construction bid rigging' -- subject(s): Criminal provisions, Letting of contracts, Public contracts 'District of Columbia construction law' -- subject(s): Construction contracts, Letting of contracts, Public contracts
What has the author James F Nagle written?
James F. Nagle has written: 'Federal construction contracting' -- subject(s): Construction contracts, Public contracts 'Washington building contracts and construction law' -- subject(s): Construction contracts, Construction industry, Law and legislation 'Federal procurement regulations' -- subject(s): Government purchasing, Law and legislation, Public contracts 'A history of government contracting' -- subject(s): Government purchasing, History, Law and legislation, Public contracts
What has the author McNeill Stokes written?
McNeill Stokes has written: 'Construction law for owners and builders' -- subject(s): Construction contracts, Construction industry, Law and legislation 'Construction law in contractor's language' -- subject(s): Construction contracts
What is construction contracts?
Construction contracts management refers to a process where you manage all contract agreements that are involved with a construction project. The term applies to construction contract managers.
What has the author Samuel Frank Schoninger written?
Samuel Frank Schoninger has written: 'Drafting Construction Contracts' -- subject(s): Construction contracts, Forms
What has the author Clarence W Dunham written?
Clarence W. Dunham has written: 'Planning industrial structures' -- subject(s): Design and construction, Factories, Usines 'The theory and practice of reinforced concrete' -- subject(s): Concrete construction, Reinforced concrete, Reinforced concrete construction 'Dunham and Young's Contracts, specifications, and law for engineers' -- subject(s): Construction contracts, Engineering contracts, Engineering law, Law 'Contracts, specifications, and law for engineers' -- subject(s): Buildings, Construction contracts, Engineering, Engineering contracts, Engineering law, Law, Specifications
How do rigged construction projects for the mafia work?
Through contract bidding and legal manipulation of contracts. Money is exchanged for a project and the money is spent before project completion leaving a partially complete area as a reminder of corruption.
