CONSTRUCTION IN PROGRESS Definition

Bookmark and Share

CONSTRUCTION IN PROGRESS is capital assets under construction or development that have not yet been placed into service, such as a building or parking lot. Capital assets are not subject to depreciation while in a construction in progress status.

Learn new Accounting Terms

LINEAR PROGRAMMING (LP), in accounting, is the mathematical approach to optimally allocating limited resources among competing activities. It is a technique used to maximize revenue, contribution margin, and profit function; or, to minimize a cost function, subject to constraints. Linear programming consists of two ingredients: (1) objective function and (2) constraints, both of which are linear. In formulating the LP problem, the first step is to define the decision variables that one is trying to solve. The next step is to formulate the objective function and constraints in terms of these decision variables.

NET WORTH is the difference between Total Liabilities and Total Assets. Minority interest is included here.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.