#4 TYBCOM Contract Costing SEM 6 | Cost Accounting | BAF | BMS | Siraj Shaikh | Mumbai University |
Definition and Concept of Contract Costing: The term contract costing is used by contractors, builders and engineers, who undertake definite contracts such as building construction, ship building, bridge construction and so on. A contract is usually undertaken for a fixed period and price (called contract price), which is payable either on the completion of the contract or by instalments according to the progress of work done. Features of Contract Costing: The salient features of contract costing are: (i) The work is generally carried out at a site and not in the factories. (ii) Each contract is given a distinguishing number in respect of which cost is ascertained. (iii) It is the contract between the contractor and contractee. (iv) Many contracts require more than one accounting year. (v) Most- of the items of cost are directly chargeable to individual contract. (vi) More often, one contract differs from others. (vii) Part payments are made depending on the certificate issued by the architect, showing value of work completed and retention money. (viii) An “escalation clause”, under which the contractor is compensated for increase in costs on account of inflation, may be included in the contract. (ix) In case of non-fulfillment of contract within the stipulated time, the contractor is required to pay penalty. i just hope you all must have liked the video, so do comment your view and do like and share the channel if you all feel worth sharing the channel. Don’t forget to subscribe our channel / sam4sir / @sirajshaikhdegreestudy Must check playlist for all other videos. ❣️ Like, share or subscribe karna mat bhulna..!!! For notes and important questions join our telegram channel : Telegram : skyeducationofficial (in case of link failure just search by name) https://t.me/skyeducationofficial https://t.me/sirajshaikhdegreestudy Connect with me on all other social media networks Facebook : siraj shaikh Instagram : sam4sir00 Twitter : sirajsam4sir Snapchat : sam4sir (siraj shaikh) Telegram : sam4sir00 #sirajshaikh #mumbaiuniversity #tybcom #tybaf #registration
