Definicja results analysis

A periodic valuation of long-term orders and projects.

Results analysis valuates the relationship between the costs and a measure of the order's progress toward completion, such as the revenue or the quantity produced.

Example:

If the measure of an order's progress is the actual revenue, the cost of sales appropriate for that revenue is calculated. The revenue, cost of sales, and reserves for imminent loss (if calculated) represent the profit on the order for the period, and are settled to Profitability Analysis.

The calculated cost of sales is compared to the actual costs, and either work in process or reserves for unrealized costs are created for the difference. Postings are made for these values in Financial Accounting.