Contract Costing.

Q80. Write short notes on Contract Costing?
Ans. Contract costing method is adopted generally by building or construction contractors.

Contract costing have the following features:

  1. The major part of the work in connection with each contract is ordinarily carried out at the site of the contract.
  2.  The bulk of the expenses incurred by the contractor are considered as direct

    .

  3.  A separate account is usually maintained for each contract.
  4. The cost unit in contract costing is the contract itself.

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