Contract Costing – Dani Ki Costing – CA IPCC Video Lectures


Contract Costing – Dani Ki Costing – CA IPCC Video Lectures

Contract Costing – Dani Ki Costing – CA IPCC Video Lectures | Contract Costing – Dani Ki Costing – CA IPCC Video Lectures | Contract Costing – Dani Ki Costing – CA IPCC Video Lectures | Contract Costing – Dani Ki Costing – CA IPCC Video Lectures | Contract Costing – Dani Ki Costing – CA IPCC Video Lectures

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Dani Ki Costing
IPCC Video Lectures
Contract Costing
Lecture 1

Lecture 2
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Contract Costing

It is reasonable that the costing of production or service in made after is completion. But when there is a series of activities connected to carry out the work, and it takes relatively longer period of time which may exceed one year requires recording of costing is to be so done that the profit of each contract in progress is transferred to profit and loss account on timely basis. Thus contract costing in simple words is a form of specific order costing where job undertaken is relatively larger and may continue for a longer period of time.
There are different formulas to calculate profit / loss of incomplete contracts based on the state of completion of contract. Different terms and conditions are kept in the contract which may affect the amount of profit on such contract. One of such example is inclusion of escalation clause. It is helpful for the contractors to maintain their profit in case of very heavy price rice of material, labour or other inputs.
Costing of contract has characteristics like bulk of expenses are considered as direct expense, Separate accounts are maintained for all the contracts, etc. The base of calculating cost of the contract is contract itself. Different calculations are considered for calculation of contract cost such as material cost, labor cost, direct expenses, indirect expenses etc.

Major calculation required to ascertain the true profit of contract is calculation of progress payment, retention of money, notional profit, etc. Where, notional profit is the difference between value of work certified and actual cost of work certified. Estimated profit is also calculated at the time of preparing budget of the contract. 


3 Comments

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  1. Sir, your videos are excellent….these are very helpful to me…..
    Thank u very much for posting these lectures
    ……
    but from where can i get ur workbook of above lectures????

  2. dharmender sharma

    Dear Sir,

    These videos are not runnning.
    please tell me what to do for running all these videos..

    Youtube is saying that this video is private.

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