Trying to determine the exact percentage of completion of a construction project in progress is like pinpointing the exact location of a moving train. The errors in calculating profit from work-in-progress (WIP) can be a nightmare for both contractors and their accountants.
What if a contracting company knew the historic profit level associated with a particular manager or customer? And what if a contractor was able to anticipate or periodically correct the anticipated results based on its knowledge of this history?