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:
- The major part of the work in connection with each contract is ordinarily carried out at the site of the contract.
- The bulk of the expenses incurred by the contractor are considered as direct
- A separate account is usually maintained for each contract.
- The cost unit in contract costing is the contract itself.