A Construction company received a contract of ₹540 lakh to build an over bridge which will take two years to complete. Which method of costing should be used by the company?

CS Executive · Cost and Management Accounting · PYQS · June 2018
A Construction company received a contract of ₹540 lakh to build an over bridge which will take two years to complete. Which method of costing should be used by the company?
(A) Job costing
(B) Single-output costing
(C) Contract costing
(D) Batch costing

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Cost and Management Accounting

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