alleryStart learning →In a re-measurement contract, how is the price fixed?
AMeasured work at scheduled prices
BActual cost plus a negotiated fee
CA single agreed lump sum for the job
DA percentage added to documented cost
Answer & Solution
Correct answer: A. Measured work at scheduled prices
The work done is measured in detail and valued with reference to a schedule of prices in the contract.
Keep practising Construction Contracts (AS 7)
Browse all Construction Contracts (AS 7) questions for CA Inter, or explore more Accounting topics.
Related questions
What does a guaranteed maximum price provide in a cost-plus contract?Unit cost contracts are often used for which type of construction?A lump sum and scheduled contract suits when what is true?Percentage of completion is an exception to which basic principle?Completion of production basis recognises revenue before sale for:Costs incurred plus recognised profits are reduced by which items?IAS 11 shows gross amount due from customers for contract work as:Excess of billings over costs on uncompleted contracts appears where?