The use of actual and expected costs to determine the percentage of completion on a long term project is an example of an output method approach to evaluating contract progress.

Question

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The use of actual and expected costs to determine the percentage of completion is an example of an input method, as it measures the efforts or resources put into the contract. Output methods measure the results achieved, such as units produced or milestones reached.

The Use of Actual and Expected Costs to Determine the Percentage