Which of the following costs shall from part of contract costs of long-term construction contract?       a. General administration costs for which reimbursement is not specified in the contract b. Research and development costs for which reimbursement is not specified in the contract c. Construction overheads including costs such as the preparation and processing of construction personnel payroll. d. Selling costs such as broker’s commission

Q: Which of the following costs is irrelevant to replacement analysis? a. Operating cost of the…

A: Introduction:- Irrelevant costs are costs, either positive or negative. Which would not be affected…

Q: Which of the following dictates how the revenue from the sale of production will be distributed:

A: Lease:   Lease is a contractual agreement whereby the right to use an asset for a particular period…

Q: which of the following expenses is properly reported on commissions and fees line of Schedule C…

A: Schedule C is a tax form used throughout the United States by self-employed individuals, sole…

Q: Conversion costs include A. product and period costs B. direct labor and manufacturing overhead…

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Q: Which overhead allocation methods do not charge support department costs to a support department…

A: Overhead: It is the indirect cost incurred in addition to the direct costs for manufacture of…

Q: When the predetermined overhead rate is based on the level of activity at capacity, an item called…

A: Variable cost: It is the cost that varies with the change in the level of activity

Q: In any construction project, the total bill to the owner must equal a. Gross profit b. Net profit c.…

A: The construction contract accounting is the accounting system suitable for businesses engaged in…

Q: ) what is the under-or-over allocated indirect production (overhead) costs? Discuss methods of…

A: Overhead means the all indirect expenses which were incurred in the manufacturing the product or…

Q: Sheridan Enterprises Ltd. has entered into a contract beginning in February 2023 to build two…

A: A long-term construction contract is the one which takes several years to complete. The issues…

Q: Which one of the following accounts is an asset similar to work-in-process inventory? Group of…

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Q: Which of statements about the contribution income statement is correct? Group of answer choices

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Q: Which of the following is a conversion cost?A. raw materialsB. direct laborC. sales commissionsD.…

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Q: Which of the following is considered a fixed cost? a) rent expense b) marketing costs record…

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Q: Which of the following cost includes determining how much to order, cost of invoices, clerical labor…

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Q: Which of the following is NOT recurring cost A. Material cost B. Expediting cost C. Workers cost D.…

A: Recurring cost refers to a cost that is repeated or reoccurs on a regular basis. This type of cost…

Q: Research and development costs are classified as: O a. Inventoriable costs. O b. O c. O d. Product…

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Q: There are three categories of costs: fixed costs, variable costs and semi-variable costs. Which of…

A: Semi-variable cost includes both fixed and variable costs. In this, most of the part is fixed but…

Q: What is the difference between the assignment of a take-out commitment to the construction lender…

A: Take-out commitment is an agreement between lender and borrower in which lender provides guarantee…

Q: The term of Final Payment. Effects of Final Payment.

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Q: Royalty on production is classified as?   a. Selling overheads   O b. Factory overheads…

A: Royalty is a payment made to the owner or third party for using a particular product or patent and…

Q: Working Capital is needed for which of the following purposes a. Purchase of raw materials and…

A: Working Capital:- It is also known as networking capital, It is a difference between current assets…

Q: Revenue from sales of the by-product can be listed in the income statement as: a. additional cost…

A: Revenue from sale of by product is shown in the income statement as an additional sales revenue…

Q: Kindly answer questions 1-3: 1.) Discretionary costs are costs that must be incurred because of past…

A: ANSWER 1) Discretionary cost is a cost which is not essential for the operation of business.Such…

Q: Which of the following is not an example of a fixed cost   A.Salaries of staff   b. Direct…

A: A fixed cost is a type of cost which does not change with the change in level of activity and will…

Q: If wages paid for construction of building are debited to wages account. It is An error of Omission…

A: At the time of preparation of trial balance, ideally both sides should match with each other.

Q: 53,600 equivalent units for direct materia 48,800 equivalent units for direct labor; _nd 42,000…

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Q: What two methods are identified in the Codification as appropriate in accounting for long-term…

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Q: 1. Describe the various types of factory/ manufacturing overheads which may occur in project cost

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A: Answer  As per the IFRS 115 revenue recognition  the revenue should only be recognized only when…

Q: A binding contract is created when a contractor submits a bid for a project O True O False

A: A binding contract is a contract where the parties to the contract are legally enforceable and the…

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER).…

A:

Q: Match one or more of the following terms with each definition below: a. Direct labour e.…

A: Introduction: The expenditures spent to sustain your company's day-to-day operations are referred to…

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.