{"id":3426,"date":"2020-02-20T05:57:44","date_gmt":"2020-02-20T05:57:44","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3426"},"modified":"2020-02-20T05:57:44","modified_gmt":"2020-02-20T05:57:44","slug":"contract-costing","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/contract-costing\/","title":{"rendered":"CONTRACT COSTING"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/contract-costing\/#CONTRACT_COSTING\" title=\"CONTRACT COSTING\">CONTRACT COSTING<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/contract-costing\/#Contract_costing_is_also_known_as_Terminal_Costing\" title=\"Contract costing is also known as Terminal Costing. \">Contract costing is also known as Terminal Costing. <\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/contract-costing\/#FEATURES_OF_CONTRACT_COSTING\" title=\"FEATURES OF CONTRACT COSTING\">FEATURES OF CONTRACT COSTING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/contract-costing\/#TREATMENT_OF_PROFIT_ON_INCOMPLETE_CONTRACTS\" title=\"TREATMENT OF PROFIT ON\nINCOMPLETE CONTRACTS\">TREATMENT OF PROFIT ON\nINCOMPLETE CONTRACTS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/contract-costing\/#COST_PLUS_CONTRACT\" title=\"COST PLUS CONTRACT\">COST PLUS CONTRACT<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"has-text-align-center wp-block-heading\" id=\"contract-costing\"><span class=\"ez-toc-section\" id=\"CONTRACT_COSTING\"><\/span><strong>CONTRACT COSTING<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"contract-costing-is-also-known-as-terminal-costing\"><span class=\"ez-toc-section\" id=\"Contract_costing_is_also_known_as_Terminal_Costing\"><\/span>Contract costing is also known as Terminal Costing. <span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"178\" height=\"284\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/01\/download-46.jpg\" alt=\"CONTRACT COSTING\" class=\"wp-image-5095\"\/><figcaption>CONTRACT COSTING<\/figcaption><\/figure>\n\n\n\n<p>It is one form of application of the principles of job order costing. Contract Costing is a type of costing used in constructional activities such as construction of buildings, roads, bridges etc. The person who takes contract for a price is called the Contractor and the person from whom it is taken is called the Contractee.<\/p>\n\n\n\n<p><strong>ACCORDING TO\nCHARTERED INSTITUTE OF MANAGEMENT ACCOUNTANTS, LONDON<\/strong><\/p>\n\n\n\n<p>\u201cContract costing is a form of specific order costing in\nwhich costs are attributed to individual contracts.\u201d<\/p>\n\n\n\n<p>In contract costing each contract is treated as a cost unit\nand costs are ascertained separately for each contract. Usually, there is a\nseparate account for each contract. <\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"features-of-contract-costing\"><span class=\"ez-toc-section\" id=\"FEATURES_OF_CONTRACT_COSTING\"><\/span><strong>FEATURES OF CONTRACT COSTING<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>EACH CONTRACT ITSELF\nA COST UNIT<\/strong><\/p>\n\n\n\n<p>In contract costing, every contract is a cost unit. Each\ncontract has its own list of expenses and incomes.<\/p>\n\n\n\n<p><strong>WORK IS EXECUTED AT\nCUSTOMERS SITE<\/strong><\/p>\n\n\n\n<p>In case of contract costing, the work is performed at a\nplace which is related to the consumer. For example: The building is\nconstructed on the land of the consumer.<\/p>\n\n\n\n<p><strong>THE EXISTENCE OF SUB\nCONTRACT<\/strong><\/p>\n\n\n\n<p>Sometimes the contractor enters into contracts with another\ncontractor to give a portion of work undertaken by him. In such cases the work\nperformed by the subcontractor s forms a direct charge to the contract\nconcerned. Sub contract cost will be shown on the debit side of the contract\naccount.<\/p>\n\n\n\n<p>Sub-contracting may be necessary under the following\ncircumstances:<\/p>\n\n\n\n<ul><li>Work of a specialized nature for which facilities\nare not internally available within the concern is offered to a sub-contractor.<\/li><li>It may be advantageous to get a part or\ncomponent from outside, if it is costlier to manufacture it.<\/li><li>Consideration of opportunity cost; the\nmanagement may not like to invest capital which may be utilized for other more\nprofitable lines.<\/li><li>The capacity of the firm may be limited and in\norder to keep time schedule, work may be speeded by offering it to\nsub-contractors.<\/li><\/ul>\n\n\n\n<p><strong>WORK IN PROGRESS<\/strong><\/p>\n\n\n\n<p>It is the unfinished contract at the end of the accounting\nperiod and it includes amount of work certified and amount of work uncertified.\nWork in progress is an asset, shown in the balance sheet by deducting there\nfrom any advance received from the contractee.<\/p>\n\n\n\n<p><strong>WORK CERTIFIED<\/strong><\/p>\n\n\n\n<p>The sales value of work completed as certified by the\narchitect is known as \u2018work certified\u2019. In the case of contracts of long\nduration, the amount payable by the customer to the contractor is based on the\nsales value of work done as certified by the architect. At the end of the\nfinancial year, the total sales value of work done and certified by the\narchitect is credited to the contract account.<\/p>\n\n\n\n<p><strong>PROFIT ON INCOMPLETE\nCONTRACT<\/strong><\/p>\n\n\n\n<p>At the end of an accounting period it may be found that\ncertain contracts which have been completed while others are still in process\nand will be completed in the coming years. The profit on completed contracts\nmay be safely taken to the credit of the profit and loss account. In the case\nof incompleted contracts there are unforeseen contingencies which may lead to\nheavy fluctuations in costs and profit. At the same time it does not also seem\ndesirable to consider the profits only on completed contracts and ignore\ncompletely incomplete ones as this may result in heavy fluctuations in the\nfuture for profit from year to year. If profit or loss is not shown in the\nintermittent years for the work in progress, contract will show high figure of\nprofit in the year of completion and reverse may be the case in the year in\nwhich a large number of contracts remain incomplete. Therefore, profits on\nincomplete contracts should be considered, of course, after providing adequate\nsums for meeting unknown contingencies.<\/p>\n\n\n\n<p><strong>WORK UNCERTIFIED<\/strong><\/p>\n\n\n\n<p>It means work which has been carried out by the contractor\nbut has not been certified by the architect. Sometimes, work which is complete\nremains uncertified at the end of the financial year. The reasons for the same\nmay be<\/p>\n\n\n\n<ul><li>Work not sufficient enough to be certified<\/li><li>Work has not reached the stipulated stage to\nqualify for certification<\/li><\/ul>\n\n\n\n<p>It is always valued at cost and credited to the contract\naccount.<\/p>\n\n\n\n<p><strong>RETENTION MONEY<\/strong><\/p>\n\n\n\n<p>Regardless of the amount of work certified, the contractor\nis paid a specified percentage of the same and the balance is held or retained\nby the contractee. This is because of the fact that the contractee has to safe\nguard himself against any contingency arising from the non fulfillment of the\nterms of the contract by the contractor. The unpaid balance of work certified\nor the amount held back or retained by the contractee is known as \u2018retention\nmoney\u2019.<\/p>\n\n\n\n<p><strong>SUB CONTRACT<\/strong><\/p>\n\n\n\n<p>Sometimes the contractor enters into contracts with another\ncontractor to give a portion of work undertaken by him. In such cases the work\nperformed by the subcontractor s forms a direct charge to the contract\nconcerned. Sub contract cost will be shown on the debit side of the contract\naccount.<\/p>\n\n\n\n<p><strong>ESCALATION CLAUSE<\/strong><\/p>\n\n\n\n<p>This is clause which is provided in the contract to cover up\nany increase in the price of the contract due to increase in the prices of raw\nmaterial or labour or in the utilization of any other factors of production. If\nmaterial and labour utilization exceeds a particular limit, the customer agrees\nto bear the additional cost occasioned by excessive utilization. Here, the\ncontractor has to satisfy the customer that excessive utilization is not the\nresult of decreased efficiency.<\/p>\n\n\n\n<p><strong>PREPARATION OF\nCONTRACT ACCOUNT<\/strong><\/p>\n\n\n\n<p>A contract account is a nominal account in nature. It is prepared to find out the cost of contract and to know profit or loss made on the contract. A contractor may undertake a number of contracts at a time. For each contract a separate account is opened. In the contract account all direct cost such as material, labour and other direct expenses incurred during an accounting period are debited and the indirect expenses are apportioned on an equitable basis. The differences between the two sides are known as Notional profit or notional loss.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/02\/contract-account-1.jpg\" alt=\"\" class=\"wp-image-3427\"\/><figcaption>CONTRACT COSTING<\/figcaption><\/figure>\n\n\n\n<p><strong>TYPES OF CONTRACTS<\/strong><\/p>\n\n\n\n<p>Generally there are three types of contracts:<\/p>\n\n\n\n<ul><li><strong>Fixed\nprice contracts:<\/strong> Under these contracts both parties agree to a fixed\ncontract price.<\/li><li><strong>Fixed\nprice contract with Escalation clause<\/strong><\/li><li><strong>Cost plus\ncontract:<\/strong> Under this contract no fixed price could be settled for a\ncontract.<\/li><\/ul>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"treatment-of-profit-on-incomplete-contracts\"><span class=\"ez-toc-section\" id=\"TREATMENT_OF_PROFIT_ON_INCOMPLETE_CONTRACTS\"><\/span><strong>TREATMENT OF PROFIT ON\nINCOMPLETE CONTRACTS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>At the end of an accounting period it may be found that\ncertain contracts which have been completed while others are still in process\nand will be completed in the coming years. The profit on completed contracts\nmay be safely taken to the credit of the profit and loss account. In the case\nof incompleted contracts there are unforeseen contingencies which may lead to\nheavy fluctuations in costs and profit. At the same time it does not also seem\ndesirable to consider the profits only on completed contracts and ignore\ncompletely incomplete ones as this may result in heavy fluctuations in the\nfuture for profit from year to year. If profit or loss is not shown in the\nintermittent years for the work in progress, contract will show high figure of\nprofit in the year of completion and reverse may be the case in the year in\nwhich a large number of contracts remain incomplete. Therefore, profits on\nincomplete contracts should be considered, of course, after providing adequate\nsums for meeting unknown contingencies. <\/p>\n\n\n\n<p>There are no hard and fast rules regarding calculation of\nthe figures for profit to be taken to the credit of profit and loss account.\nHowever, the following rules may be followed: <\/p>\n\n\n\n<p>(i) Profit should be considered in respect of work certified\nonly, work uncertified should always be valued at cost. <\/p>\n\n\n\n<p>(ii) No profit should be taken into consideration if the\namount of work certified is less than 1\/4th of the contract price because in\nsuch a case it is not possible to foresee the future clearly. <\/p>\n\n\n\n<p>(iii) If the amount of work certified is 1\/4th or more but\nless than 1\/2 of the contract price, 1\/3rd of the profit disclosed as reduced\nby the percentage of cash received from the contractee, should be taken to the\nprofit and loss account or <\/p>\n\n\n\n<p><strong>Profit =1\/3 x\nNotional Profit x {Cash received \/ Work certified} <\/strong><\/p>\n\n\n\n<p>&nbsp;The balance be\nallowed to remain as a reserve. <\/p>\n\n\n\n<p>(iv) If the amount of work certified is 1\/2 or more of the\ncontract price, 2\/3rd of the profit disclosed, as reduced by the percentage of\ncash received from the contractee, should be taken to the profit and loss\naccount. <\/p>\n\n\n\n<p><strong>Profit= 2\/3 x\nNotional Profit x {Cash received \/ Work certified} <\/strong><\/p>\n\n\n\n<p>The balance should be treated as reserve. <\/p>\n\n\n\n<p>(v) In case the contract is very much near to completion, if\npossible the total cost of completing the contract should be estimated. The\nestimated total profit on the contract then can be calculated by deducting the\nestimated cost from the contract price. The profit and loss account should be\ncredited with that proportion of total estimated profit on cash basis, which\nthe work certified bears to the total contract price. <\/p>\n\n\n\n<p><strong>Profit=Estimated total\nprofit x {Work certified \/ Contract price} <\/strong><\/p>\n\n\n\n<p>(vi) The whole of loss, if any, should be transferred to the\nprofit and loss account. <\/p>\n\n\n\n<p>That part of the profit which is not credited to the profit\nand loss account is treated as a reserve against contingencies and is deducted\nfrom the amount of work-in-progress for balance sheet purpose. It is carried\ndown as a credit balance in the contract account itself, the work-in-progress\nbeing represented by the debit balance in the contract account. <\/p>\n\n\n\n<p>The treatment of profit on incomplete contract will be\ncomputed as per specific instruction of problem. If there is no specific\ninstruction then above rules should be applied.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"cost-plus-contract\"><span class=\"ez-toc-section\" id=\"COST_PLUS_CONTRACT\"><\/span><strong>COST PLUS CONTRACT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Cost plus contract is a contract in which the value of the\ncontract is ascertained by adding a certain percentage of profit over the total\ncost of the work. This is used in case of those contracts whose exact cost\ncannot be correctly estimated at the time of undertaking a work. The profit to\nbe paid to the contractor may be a fixed amount or it may be a particular\npercentage of cost or capital employed. These type of contracts are undertaken\nfor production of special articles not usually manufactured and is generally\nemployed, when Government happens to be a contractee. Generally, in such\ncontract, contractor and contractee have clear agreement about the items of\ncost to be included, type of material to be used, labour rates for different\ngrades, normal wastages to be permitted and the rate or amount of profit. <\/p>\n\n\n\n<p><strong>Advantage of cost\nplus contract <\/strong><\/p>\n\n\n\n<ul><li>Cost plus contract ensures that a reasonable\nprofit accrues to the contractor even in risky projects. <\/li><li>It simplifies the work offering tenders and\nquotations. <\/li><li>It provides escalation clauses and thus covers\nthe contractor from fluctuations in price and utilisation of elements of\nproduction. <\/li><li>The customer is assured of paying only\nreasonable amount of profit. <\/li><li>The customer has the right to conduct cost audit\nso that he can ensure that he is not being cheated by the contractor. <\/li><\/ul>\n\n\n\n<p><strong>Disadvantages of cost\nplus contract system <\/strong><\/p>\n\n\n\n<p>Inspite of the advantages mentioned above cost plus contract\nsystem has the following disadvantages: <\/p>\n\n\n\n<ul><li>Since the contractor is assured of profit margin, he may not take initiative for cost reduction by affecting economies of production and reducing wastages. <\/li><li>The ultimate price to be paid by the customer cannot be exactly ascertained until the work is completed and this creates delay in preparing purchase budget by the customer. <\/li><li>The customer has to pay not only the resultant high cost but also the resultant high profit. Thus, customer has to pay substantially for lack of proper attitude (towards cost and efficiency) on the part of contractor.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cost-accounting\/\">Cost Accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-cost-accounting-pdf\/\">Scope of cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/elements-of-cost\/\">Elements of cost<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/types-of-cost\/\">Types of cost<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/material-control-in-cost-accounting-pdf\/\">Material control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perpetual-inventory-system\/\">Perpetual inventory system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/pricing-of-materials\/\">Pricing of materials<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/bin-card\/\">Bin Card<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/store-ledger\/\">Stores Ledger<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/incentive-plans\/\">Incentive plans<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/overhead\/\">Overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-treatment-of-idle-time\/\">Idle time<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/system-of-wage-payment-in-cost-accounting\/\">System of wage payment in cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-time-rate-system-and-piece-rate-system\/\">Time rate vs piece rate wage system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-centre\/\">Cost Center<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/labor-turnover\/\">Labour Turnover<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-management-accounting-and-cost-accounting\/\">Difference between management accounting and cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/allocation-and-apportionment-of-overheads\/\">Allocation and apportionment of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-allocation-and-apportionment-of-overheads\/\">Allocation vs Apportionment of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/absorption-of-overheads\/\">Absorption of overheads<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/over-absorption-and-under-absorption-of-overheads\/\">Over absorption and under absorption of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/activity-based-costing\/\">Activity based costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-traditional-costing-and-activity-based-costing\/\">Traditional costing vs ABC system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reconciliation-of-accounts\/\">Reconciliation of accounts<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/unit-costing\/\">Unit costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-sheet-format\/\">Cost sheet format<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-sheet-vs-production-account\/\">Cost sheet vs production sheet<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/job-costing\/\">Job costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/batch-costing\/\">Batch Costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-job-costing-and-batch-costing\/\">job costing vs batch costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/contract-costing\/\">Contract costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-job-costing-and-contract-costing\/\">Job Costing vs Contract costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/process-costing\/\">Process Costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-costing-vs-job-costing\/\">Process costing vs job costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/joint-products\/\">Joint products<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/by-products\/\">By Product&nbsp;<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/equivalent-production\/\">Equivalent production<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/marginal-costing\/\">Marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/applications-of-marginal-costing\/\">Application of marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-volume-profit-analysis\/\">Cost volume profit analysis<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/tools-and-techniques-of-marginal-costing\/\">Tools and techniques of marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/budget\/\">Budget<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/break-even-point\/\">Break even point<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-budgetary-control\/\">Process of budgetary control<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/explain-the-advantages-and-limitations-of-budgetary-control\/\">Advantages and limitations of budgetary control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/budgetary-control\/\">Budgetary Control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/zero-base-budgeting\/\">Zero base budgeting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/standard-costing\/\">Standard Costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/variance-analysis\/\">Variance Analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-standard-costing-and-budgetary-control\/\">Standard costing vs budgetary control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-management-accounting-and-cost-accounting\/\">Management accounting vs cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-financial-accounting-management-accounting-and-cost-accounting\/\">Cost accounting vs financial accounting<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"512\" height=\"152\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg\" alt=\"CONTRACT COSTING\" class=\"wp-image-4836\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg 512w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1-300x89.jpg 300w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><figcaption>CONTRACT COSTING<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>CONTRACT COSTING Contract costing is also known as Terminal Costing. It is one form of application of the principles of job order costing. Contract Costing is a type of costing used in constructional activities such as construction of buildings, roads, bridges etc. The person who takes contract for a price is called the Contractor and&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/contract-costing\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;CONTRACT COSTING&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3430,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[187],"tags":[],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3426"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3426"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3426\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3430"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}