Final answer:
The percentage-of-completion is calculated by dividing the costs incurred to date by the estimated total costs and multiplying by 100.
Step-by-step explanation:
The formula for calculating the percentage-of-completion to date (cost) is a method used in accounting to recognize revenue and expenses of a long-term project proportional to the work completed on the project so far. To calculate it, you divide the total costs incurred to date by the estimated total costs of the project and then multiply by 100 to express it as a percentage. So the formula is:
Percentage-of-Completion = (Total Costs Incurred to Date / Estimated Total Costs) × 100
This method helps in reflecting the financial progress of a project, and is especially relevant in industries where long-term contracts are common, such as construction.