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Please I need help !!!!
I cannot quite understand why there is a difference between cost of sales of the contract used to reach the gross profit of the year and the cost to date plus profit to reach the amount of customer due
Thanks
Because they are calculated on different bases.
For working W1, we apply the percentage complete to the total costs anticipated on the contract
For working W2, we take the costs to date + attributable profit
Why should they reconcile?
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