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Questions and Answers
What is the method of Costing used when a job is large and requires considerable time to complete?
What is the method of Costing used when a job is large and requires considerable time to complete?
- Process costing
- Activity-based costing
- Job costing
- Contract costing (correct)
What determines the completed contract price in contract costing?
What determines the completed contract price in contract costing?
- Architect certificate (correct)
- Contractor's estimate
- Contractee's assumption
- Market price index
When is the contract price paid to the contractor in contract costing?
When is the contract price paid to the contractor in contract costing?
- Based on contractor's estimate
- Before initiation of work
- Monthly installments
- After completion of work (correct)
In contract costing, what kind of account does the contractor prepare for each contract?
In contract costing, what kind of account does the contractor prepare for each contract?
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What does the debit side of the contract account in contract costing record?
What does the debit side of the contract account in contract costing record?
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What type of companies typically adopt contract costing?
What type of companies typically adopt contract costing?
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What is another term for contract costing?
What is another term for contract costing?
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How does a contractor determine the profit or loss of a particular job in contract costing?
How does a contractor determine the profit or loss of a particular job in contract costing?
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Who pays the contract price to the contractor in contract costing?
Who pays the contract price to the contractor in contract costing?
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What is considered as a cost unit in contract costing?
What is considered as a cost unit in contract costing?
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