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Is billings in excess of cost reported in current asset side is your inventory?
Wiki User
∙ 10y ago
No, billings in excess of costs are a current liability.
Wiki User
∙ 10y ago
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Are billings in excess of cost a current liability or long term liability?
Yes it is a current liability
Which basic production planning strategy will build inventory and avoid the costs of excess capacity?
Which basic production strategy will build inventory and avoid the costs of excess capacity
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 are the merits of continuos inventory records?
There is something called the Opportunity cost. The regular inventory check would help in minimization of the capital tied up in excess inventory and the opportunity cost can be minimized by that. So the biggest merit of that is to lay check on the maintenance and excess tied up capital to the inventory reserves.
Expenses incurred while earning revenue should be reported in the same period that the income is reported?
matching principle
Are billings in excess of cost a current liability or long term liability?
Yes it is a current liability
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
Where could I sell off excess dollar store inventory?
You can use ebay to sell excess inventory. Also craiglist or local wanted ads may have people looking to buy excess inventory.
Which basic production planning strategy will build inventory and avoid the costs of excess capacity?
Which basic production strategy will build inventory and avoid the costs of excess capacity
What is a major inhibitor for the DoD to sell excess inventory?
Difficulty with identifying and classifying excess items
How do you calculate the excess inventory across a supply chain or at a particular site warehouse?
You would have to do a count of all the inventory. Have all the managers submit the information so you can determine the excess.
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.
How do businesses manage excess inventory?
With excess inventory, it is possible to return it back to the supplier for a fee. However, if a business still wants to attempt to make a profit, many businesses will put the inventory up for sale or clearance. This usually occurs at the end of a selling season when new inventory is coming in.
What are the merits of continuos inventory records?
There is something called the Opportunity cost. The regular inventory check would help in minimization of the capital tied up in excess inventory and the opportunity cost can be minimized by that. So the biggest merit of that is to lay check on the maintenance and excess tied up capital to the inventory reserves.
How do companies liquidate excess inventory that isn't selling?
Companies have several options when liquidating inventory. They can hold liquidation sales for the public. Or they can send their inventory to be auctioned by bulk.
How are the balances of progress billings and construction in progress shown at reporting dates prior to the completion for a long term contract?
Construction in Progress (C-in-P) is an inventory account and Progress Billings is a contra account that relates to it. When a contractor incurrs costs from the process of construction it debits it to C-in-P. Here's an example transaction is as follows: C-in-P 10,000 Cash, A/P, etc. 10,000 Depending on whether the contractor is accounting via the completed contract method or percentage of completion method determines the ultimate balance of C-in-P. If percentage of completion method is used then the Gross Profit that results from the yearly recognition of revenue is debited to C-in-P as a sort of value added until the contract's completion. Progress Billings is credited every time an invoice is sent to the customer in request for funds. An example transation is as follows: A/R 15,000 Progress Billings 15,000 At the end of the contract Progress Billings should equal the amount to be collected from the customer. C-in-P and Progress Billings will appear on the Balance Sheet as follows: C-in-P 30,000 Progress Billings <25,000> Progress in Excess of Billings 5,000 If the current balance of C-in-P is larger than the current balance in Progress Billings it will appear as an asset. If reversed it will appear as a liability because the customer will have greaty equity in the project than the contractor.
What is the cost in excess of billing in long term construction contracts?
Cost in Excess of Billing is an Asset Account that means the contract is under-billed. Actual billings are less than Revenue Earned.
