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Contract Costing
It is a form of exact order costing, which is applied to relatively large cost units that normally get a considerable length of time to complete as an example of construction or building works. Contract jobs are undertaken in accordance along with particular requirements of contractee/Customer. Contracts may be distinguished from job orders ia the given features:
The money value of a contract is much larger than such of a job order.
To second the progress of contract works, a particular account identified as a contract account is maintained.
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