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Problem 1: Contract costing covers large continuous jobs that can take years. Which statement is true with regards to the features of long term contracts:
A. Long term contracts are large contracts such as building a bridge
B. Every contract is accounted for separately
C. The work is generally confined to a specific site
D. All of the above
E. A and B
Problem 2: The contract price in contract accounting is ...
A. The gross revenue due to the contractor in accordance with the contract agreement
B. The total cost incurred to complete the project
C. The work which is generally confined to a specific site
D. The progress payments based on certified work for partial completion of the project
E. The amount of money withheld on certified work as a contingency on comebacks
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