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Contract costing notes for 2nd year

Institution: College

Course: Diploma in Accountancy ,diploma business management ,diploma in supplies chain management

Content Category: College Schemes of Work

Posted By: colyn

Document Type: PDF

Number of Pages: 6

Price: KES 20
 
    

Views: 607     Downloads: 5

Summary

The document contains notes on contract costing and contain format of both contract account and contractee account alongside features of contract costing together with its problem solution

Brief Overview:

CONTRACT COSTING
A contract is an activity carried out by a licensed company and it involves construction project such as construction of building ,bridges, roads etc.
TYPES OF CONTRACTS
1. FIXED PRICE CONTRACT
The contractor agrees with contractee to a fixed contract price.
2. FIXED PRICE CONTRACT SUBJECT TO A ESCALATION CLAUSE.
The contractor agrees with contractee to a fixed contract price which is subject to escalation clause. This clause is provided to covered up any changes in the price of raw material
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