Questions:
1. In contract cost accounts, it may be necessary to make a charge for the use of a plant of machinery. Explain briefly two methods of dealing with the charge and state in what circumstances you would adopt each method.
2. What is a cost-plus- contract. Discuss this from the point of view of
a] manufacturer and
b] the buyer.
3. Explain the methods of computing the profits in case of an incomplete contract.
4. What do you understand by ‘Escalation Clause'? Explain fully.