Question

The excess of contract price over estimated total cost of the contract is called​

Answer 1

Answer:

Estimated profit is the answer

Answer 2

ESTIMATED PROFIT

The excess of contract price over estimated total cost of the contract is called ESTIMATED PROFIT.

EXPLAINING ESTIMATED PROFIT:

It is the difference between the contract price and the contract's expected total cost. It is always computed for the duration of the contract.

Only when the costs to be expended in the near future can be projected on a reasonable basis can an estimated profit be calculated.

Contract Price – Total estimated contract cost (cost expended to date + expected cost of completion) = Estimated Profit