cost-to-cost method

The cost-to-cost method is a way of measuring progress on a project by comparing the costs incurred to date with the total expected costs. This method is commonly used in project management and accounting, particularly for long-term contracts. By determining what percentage of total costs have already been spent, organizations can assess how much of the project is completed and recognize revenue progressively. Essentially, it helps businesses understand their financial position during the project and ensure they are on track to meet their budget and timeline goals.