Difference Between CP/FP and Time and Materials in Project Accounting

The document below will go through the main differences between the types of accounting methods, types of fees, etc. for each type of project.


Time and Materials
Direct Billing
NC/NB Billing types
When Performed and When Billed Cost Recognition
Rate Table
Accrued Revenues
Service Fee
Billing and Revenue together


TM Profit Types:
Billing Rate
Markup %
None

Cost Plus/ Fixed Price
Earnings in Excess of Billings (EEB) and Billiing in excess of Earnings (BEE) Accounts
Completion Method
Cost-to-Cost, Effort Expended, and Completed Cost Recognition
STDbilling type only
No Rate Table
No Accrued Revenue
Retention Fee
Separate Revenue Recognition


CP Profit Types:
% of Actual
% of Baseline
None
Profit/Unit- Fixed
Profit/Unit-Variable
Total Profit


FP Profit Types:
% of Baseline
Profit/Unit-Fixed
None
Total Profit




This article was TechKnowledge Document ID:24624