Which of the following statements is NOT true about contract costing ........

Costing - Phase (I & II) Methods of Costing

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Which of the following statements is NOT true about contract costing?

Number of contracts undertaken at a time is limited

Work is done at the site of the customer

Requires long period for completion

Indirect costs are higher as compared to job costing

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Explanation:

False, Indirect costs are higher as compared to job costing.

EXPLANATION: Indirect costs are lower as compared to job costing, The only item of indirect cost may be head office expenses. such cost represents only a samll portion of the contract cost and is absorbed usually on some overall basis such as percentage of total contract cost.