Contract Costing

It is a form of exact order costing, which is applied to relatively large cost units that normally get a considerable length of time to complete as an example of construction or building works. Contract jobs are undertaken in accordance along with particular requirements of contractee/Customer.  Contracts may be distinguished from job orders ia the given features:

The money value of a contract is much larger than such of a job order.

1. A contract consumes considerably larger amounts of resources than a job order.
2. For a contract, special progress reports are generally made whereas in job costing, reports are made after the completion of the job.
3. As a contract, indirect costs are relatively smaller in relation to direct costs though the vice versa is time for job order.

To second the progress of contract works, a particular account identified as a contract account is maintained.

Posted Date: 2/7/2013 2:23:48 AM | Location : United States

Ask an Expert

Related Discussions:- Contract costing, Assignment Help, Ask Question on Contract costing, Get Answer, Expert's Help, Contract costing Discussions

Write discussion on Contract costing
Your posts are moderated

Write your message here..

Related Questions

the practice of standard costing., Determine why  JIT, TQM and AMTs may no... Determine why  JIT, TQM and AMTs may not always be entirely compatible with  the practice of standard costing.

Accrued liabilities, Accrued liabilities show expenses or obligations incur... Accrued liabilities show expenses or obligations incurred in the earlier accounting period but the payment for similar will be made in the subsequent period. In several cases where

Overhead cost, what is overhead cost classfication of cost overhead what is overhead cost classfication of cost overhead

What is the net operating income, A manufacturing company that produces a s... A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: selling price $140 units in begining in

Statements on tax standards, Compare the American Institute of CPAs' (AICPA... Compare the American Institute of CPAs' (AICPA) Statements on Tax Standards (SSTS) and the Treasury Department Circular 230 rules to practice before the Internal Revenue Service (I

Relevant costs for non-routine decisions, What are types of relevant costs... What are types of relevant costs

Relevant costs, What are investment appraisal methods when opening a new pr... What are investment appraisal methods when opening a new project?

Activity-based costing and throughput accounting, The  basic  principles ... The  basic  principles  of  standard  costing  and  variance  analysis  may  be  adapted  to  the needs of  relatively  new  methods  of  accounting  such  as  activity-based  cost

Cost units - terms used in cost accounting, Cost Units - Terms Used in Cost... Cost Units - Terms Used in Cost Accounting It is the quantitative units of the service or product in relation to those costs are ascertained. The cost unit will be determined

Calculate the variable cost, Workmen shoes accumulated the following produc... Workmen shoes accumulated the following production and cost data for the past 5 months. i)  Using the high/low method calculate the variable cost per unit and the fixed cos