Question

Contract costing usually applicable in
(a) Constructional works
(b) Textile mills
(c) Cement industries
(d) chemical indust
contract cost?​

Answer 1

Answer:

construction work and it depend on the work u so i cant give the appropriate cost

Answer 2

Contract costing is usually applicable in construction works. (Option a)

• Contract costing is a form of job costing, where the costing is based on a contract.
• It is associated with works that are done according to the customer's requirements.
• Here the work is mostly of long duration.
• This form of work is mostly seen in the construction industry where there are contractors who apply contract costing.
• Since such works get terminated after their completion and the contract account gets permanently closed, contract costing is also referred to as terminal costing.