Start learning →

Which contract fixes one sum for all the work, with no cost breakdown?

AUnit cost contract
BLump sum contract
CRemeasurement contract
DCost plus contract
Answer & Solution
Correct answer: B. Lump sum contract
A lump sum contract promises a specified total for completed work, so the owner sees no breakdown of cost.
Practise this question with Quill — CA Inter →

Keep practising Construction Contracts (AS 7)

Browse all Construction Contracts (AS 7) questions for CA Inter, or explore more Accounting topics.

Start a Construction Contracts (AS 7) lesson →
Related questions