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A bridge construction firm computes the cost of each project undertaken using:
AJob costing
BContract costing
CProcess costing
DOperating costing
Answer & Solution
Correct answer: B. Contract costing
1. Contract costing is used in the construction industry.
2. Each contract may run for several months or years.
3. It is similar to job costing but each contract has a much longer duration.
_Source: ICMAI BoS CMA Foundation Paper 2 (Cost Accounting), Module 4 §4.1-4.2 (Methods & Systems of Costing), p. 297-308_
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