Question

Which of the following industries does not use contract costing?

• A. Ship building
• B. Civil construction
• C. Automobiles
• D. Construction of bridges

Answer 1

The correct option is C Automobiles

In case of automobile industries, either batch costing or job costing is used.

The contract costing method is used mostly by builders, civil contractors, ship builders, and construction and mechanical engineering firms. Generally, the contract is undertaken at the site of contract i.e. customer and according to the specifications of customer.