In contract costing, if the amount of work certified is 1/4 th or more but less than 1/2 of the 'contract price', then in case of loss, the amount to be transferred to profit and loss account is —

CS Executive · Cost and Management Accounting · PYQS · December 2014
In contract costing, if the amount of work certified is 1/4 th or more but less than 1/2 of the 'contract price', then in case of loss, the amount to be transferred to profit and loss account is —
(A) 1/3 rd of loss
(B) 2/3 rd of loss
(C) 1/2 of loss
(D) Total loss.

Answer & Explanation:

Correct Answer: Option (D)

Correct answer: (D) Total loss..

Topics: Contract Costing

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