State three features of Contract Costing.

1.	State three features of Contract Costing.
Answer» 1. The size of the job is generally large. 2. A contract may take more than one year to complete. 3. The work on the contract is carried out at the site of the contract. 4. Each contract is considered to represent a cost unit. 5. A separate contract account is prepared in the books of the contractor for each contract. 6. Material is specifically purchased for the contract. 7. Labour and other expenses are direct in nature. 8. Plant and equipment may be purchased or hired for the contract. 9. Payments to the contractor by the contractee are made at various stages of completion.

Answer»

1. The size of the job is generally large.

2. A contract may take more than one year to complete.

3. The work on the contract is carried out at the site of the contract.

4. Each contract is considered to represent a cost unit.

5. A separate contract account is prepared in the books of the contractor for each contract.

6. Material is specifically purchased for the contract.

7. Labour and other expenses are direct in nature.

8. Plant and equipment may be purchased or hired for the contract.

9. Payments to the contractor by the contractee are made at various stages of completion.

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