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

Interest earned on down payment, You sell a machine for $600,000. You allow... You sell a machine for $600,000. You allow the client to pay 1/3 at the time of the sale and 1/3 at the end of year one and 1/3 at the end of year two. The company earns 10% on ass

Operation and design of cost accounting systems, Operation and Design of Co... Operation and Design of Cost Accounting Systems A number of features should be taken into account previously to finalizing the design of a cost and management accounting syste

Change in method of deprecation, Your client has asked you to provide guida... Your client has asked you to provide guidance on the following potential accounting changes: (1) Change from straight-line method of depreciation to sum-of-the-years'-digits (2) Ch

Compute the cost per unit, Ass ume that during April, the job cost sheet f... Ass ume that during April, the job cost sheet for Job 206 showed the following:                                                          Dept. A                   Dept. B M

Labour, what is labour what is labour

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

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

Job costing, Your company completed the site work for the South Pointe offi... Your company completed the site work for the South Pointe office complex. The costs are shown in Figure 11-3. The site concrete labor and landscaping were done by subcontractors. T

Standard costing, behavioral aspect of standard costing behavioral aspect of standard costing

Prepare the journal entries to record depreciation, Moore Corporation follo... Moore Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings (the corporation uses the nearest full