Contract Costing
Contract
costing is that form of specific order costing under which each contract is
treated as cost unit and costs are accumulated and ascertained separately for each
contract.
Features of Contract Costing
Each
contract is treated as cost unit
All costs
are accumulated and ascertained for each contract
Work on
contracts is usually executed at the site of contract
Indirect
costs usually constitute a small portion of the total cost of the contract.
The numbers
of contracts undertaken by a contractor at a time is not usually very large
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