Question

Which of the following cost is not a contract cost​

Answer 1

Explanation:

ixohxihdiydiydyjksisisi

Answer 2

No profits to profit and loss account

• The tracking of costs linked with a specific contract with a customer is known as contract costing. For example, a company submits a bid for a huge construction project with a potential customer, and the two parties agree in a contract to reimburse the company in a specific way.
• Contract costs, in general, would comprise all direct costs (such as direct materials and direct labour), direct expenses, and any construction overhead that may be assigned to individual contracts.

• The four types of contract costs are-

1. Lump-sum agreement. A lump sum contract establishes a single price for all project work.
2. Unit Price Contract
3. Cost Plus Contract
4. Time and Materials Contract