The cost of sub-contracts is :

CS Executive · Cost and Management Accounting · PYQS · December 2021
The cost of sub-contracts is :
(A) A direct charge against the contract for which the work has been done
(B) An indirect cost to the contract for which the work has been done
(C) Directly charged to costing profit and loss account
(D) Apportioned upon all the contracts which have been completed and to be completed

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Contract Costing

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