Profit in incomplete contract in known as notional profit because:

Related MCQs

• The loss incurred on an incomplete contract is transferred to …………….account.
• When the completion stage of the contract is more than half, the profit to be credited to Profit and Loss account will be equal to…………..
• If the amount of work certified is less than………of the contract price,then no profit should be taken to Profit & Loss Account.
• Sub contract cost is always to be treated as ……………….to the contract.
• The over-absorbed overhead is accounted for as an adjustment to the profit in the period, and is added to profit in the cost accounting income statement.
• The relative sales value method is the most widely used method of apportioning joint costs because (ignoring the effect of further processing costs) it assumes that all products achieve the same profit margin.
• Contract costing is not used in one of the following industries.
• The sum of value of work certified and uncertified appearing in the Contract Account is called ……………..
• WIP in contract means:
• The contract undertaken are completed away from the ………………premises.