Contract costing, Cost Accounting

Assignment Help:

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.


Related Discussions:- Contract costing

Material handling, Material Handling The objective is to ensure about ...

Material Handling The objective is to ensure about the goods are delivered to the right places at the right instance and in aright manner to ignore delays, unnecessary and con

Select the correct answer, If fixed costs are $743,122 and variable costs a...

If fixed costs are $743,122 and variable costs are 69% of sales, what is the break-even point in sales dollars? Select the correct answer. A. $512,754 B. $2,397,168 C. $1,255,876 D

Time analysis - cost accumulation, Time Analysis - Cost Accumulation T...

Time Analysis - Cost Accumulation This is generally achieved via having the employee complete a daily or weekly timesheet or via contain job cards or piecework tickets. As whe

Business Combinations, what are the legal distinctions between a business c...

what are the legal distinctions between a business combination, a merger, and a consolidation.

Factory Overhead Budget, Factory Overhead Budget This budget represent...

Factory Overhead Budget This budget represents the forecasts of each the production variable and fixed and semi-variable overheads to be incurred throughout the budget period.

Regression analysis method of cost estimation, Regression Analysis Method o...

Regression Analysis Method of Cost Estimation It includes estimating the cost function by utilizing past data or the dependent and the independent variables. Hence the cost fu

Working capital accounts, Determine the additional cash a company could obt...

Determine the additional cash a company could obtain from its working capital accounts if it can improve its average collection period by three days and inventory turnover by 0.5 t

Accounting case study, Accounting Case Study: The Champlain Career Con...

Accounting Case Study: The Champlain Career Consulting Corporation ("CCCC") is owned by three Trent graduates. Incorporated in 2009, CCCC provides a wide-range of career plann

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd