alleryStart learning →Price 12,000 and revised total cost 15,000. Expected total loss?
A3,600
B1,500
C2,400
D3,000
Answer & Solution
Correct answer: D. 3,000
Expected cost of 15,000 less the contract price of 12,000 leaves a loss of 3,000, to be booked in full at once.
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?