Duke Ltd has a contract with a customer ongoing at the end of the financial year, 31 December 2020. Details of this contract are as follows: Total contract price £50,000 Cost incurred to date £12,000 Anticipated future costs £28,000 Progress billing - Agreed price for the component completed £14,000 Progress is measured using the output method under IFRS 15 Revenue from Contracts with Customers. What amount of revenue is able to be recognised for the year ended 31 December 2020? a) £15,000 b) £50,000 c) £21,000 d) £14,000

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.