Tag: Estimates
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Estimates, Bids and Proposals – Differences Among Offers in Construction
Estimates, bids and proposals are terms used to present a dollar value associated with construction work. The terms are NOT interchangeable.
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Estimating in Construction – Part V (Cost Drivers and Application Principles)
The core tenet of estimating in construction is that each estimate is unique. This uniqueness is driven by hard costs of construction.
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Implement Job Cost Accounting in Construction
Financial success in construction is tied directly to job costing. Without job cost accounting, financial wellness is likely a product of coincidence than authority within this industry. Implementing job costing in construction is the absolute best financial control a contractor can do to ensure success. Tie cost accounting to the estimating process, and prosperity is…
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Estimating in Construction – Part III (Job Costs by Phase Evaluation Process)
Estimating in construction is prepared utilizing a similar timeline fashion as project milestones with an overall section to cover those costs that are ongoing throughout the project’s entire time frame.
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Estimating in Construction – Part II (Financial Outcomes Evaluation)
Estimating in construction is a tool to guide the construction management team towards improved profitability (an internal control system).
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Bookkeeping – Estimating Extraordinary Items (Lesson 87)
The final type of estimating relates to unusual and infrequent items; these are commonly referred to as extraordinary items. Basically, they rarely occur but do happen once or twice over an economic cycle.
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Bookkeeping – Estimating Warranties (Lesson 86)
Warranties are assurances to customers that the product sold or service rendered will perform as stated or contracted. Often products or services are defective and therefore require replacement or repair. To properly match the cost of warranty work against the revenue generated an estimate of costs is made and recorded to cost of sales.
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Bookkeeping – Estimating Bad Debts (Lesson 85)
Tolerating non-payment is simply a part of doing business. To assist in measuring this dollar value, the accountant must estimate bad debts. This is the fifth part in the series of bookkeeping estimates within the advanced skills section of bookkeeping.
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Bookkeeping – Estimating Depreciation (Lesson 83)
Depreciation is a form of an allowance for the wear and tear (exhaustion) of property used in a trade or a commercial enterprise. The idea is to match as well as possible the actual use (utility) of the asset to its change or reduction in fair market value due to that utility.
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Bookkeeping – Estimates (Lesson 82)
There are many transactions in accounting requiring the accountant to use estimates for the respective debits and credits. The following five lessons cover how estimating is performed with depreciation, payroll benefits, bad debts, warranties and extraordinary items. This lesson explains why estimating is needed and used in business.