COST IN EXCESS OF BILLINGS Definition

Bookmark and Share

COST IN EXCESS OF BILLINGS, in percentage of completion method, is when the billings on uncompleted contracts are less than the income earned to date. These under-billings result in increased assets. Conversely, where billings are greater than the income earned on uncompleted contracts, a liability, billings in excess of costs, results.

Learn new Accounting Terms

MONEY MEASUREMENT CONCEPT stipulates that all business transactions must be expressed in money terms, i.e., if something cannot be measured in money; it will not be included in accounting books.

OPEN TO BUY is the dollar amount budgeted by a business for inventory purchases for a specific time period.

Suggest a Term

Enter Search Term

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