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In the book 3 types of contract costs are mentioned.
1) costs that relate directly to specific contract
2) costs that are attributable to contract activity in general and can be allocated to the contract
3)such other costs as are specifically chargeable to the customer under the terms of the contract.can u give some practical examples of each types of cost? Although i get the first 2 ones… i dont understand the third type of Contract Cost…
In the contract signed with the customer, it could be that there are some costs which will be incurred which are possibly not directly related to the construction project but which are agreed to be charged to the customer.
And, no, I can’t think of an example and it won’t come up in an F7 exam
And if it’s a question from the text book, may I suggest you contact the publisher ( BPP, Kaplan or whoever ) to explain their vaguenesses!
okay …. just relax Mr. Mike little il be careful about posting questions on vagueness next time…. 🙂
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