A contractor has entered into a long-term contract at an agreed price of Rs. 1,75,000 subject to
Question:
A contractor has entered into a long-term contract at an agreed price of Rs. 1,75,000 subject to an escalation clause for materials and wages as spelt out in the contract and corresponding actual are as follows:
Reckoning the full actual consumption of materials and wages, the company has claimed a final price of Rs.. 1,77,360. Give your analysis of the admissible escalation claim and indicate the final price payable.
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To calculate the admissible escalation claim and the final price payable we need to compare the standard costs with the actual costs for materials and ...View the full answer
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