Question

What is contract costing ? Where it is considered appropriate​

Answer 1

Answer:

Contract costing is the tracking of costs associated with a specific contract with a customer.

Explanation:

Contract costing:

One contract serves as the unit of cost in the unique work costing method known as contract costing. The contract itself is a cost center that is carried out in accordance with the customer's requirements. When an organization performs building work, a variation of the job costing approach called contract costing may be used. Terminal pricing is another name for it. Every contract, whether it is short- or long-term, is handled like a job.

Contract costing is mainly applied in building construction, civil engineering projects, shipbuilding, road, and railway line contracts, construction of bridges, etc

#SPJ3