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On page 268, there is a formula given for the amount of the current period s revenue (or gross profit) using the cost-to-cost method. Is revenue the same as gross profit?

April 26, 2017Formula given gross page period profit revenue s

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On page 268, there is a formula given for the amount of the current period s revenue (or gross profit) using the cost-to-cost method. Is revenue the same as gross profit?

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Answer No, total gross profits consists of total contract revenue less the most current estimated total contract costs. This is the equivalent of revenues minus the cost of goods sold to arrive at gross profit. There is a footnote on page 268 explaining this.