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Look at the price of the been given earnings in the identical way. This means elevating precisely the same proportion of completion by the entire supposed deal Charge, and subtracting the quantity formerly realised to arrive at the price of collected income to become recognised in The present accounting period.
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Project accounting is commonly employed by government contractors, wherever the opportunity to account for fees by agreement (and sometimes deal line item, or CLIN) is generally a need for interim payments.[five]
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