CMA Intermediate · Cost Accounting · Contract Costing
In contract costing, 'work certified' means:
Work certified is the value of contract work that the contractee's architect or engineer has inspected and approved by issuing a certificate. Work completed but not yet approved is work uncertified, and cash received is separate because retention money is withheld from the certified value.
- AWork completed by the contractor but not yet inspected by the architect or engineer of the contractee
- BValue of work approved by the contractee's architect or engineer, for which a certificate has been issuedCorrect
- CCost of materials lying unused at the contract site on the date of the balance sheet
- DAmount of cash actually received from the contractee up to the date
Explanation
Work certified is the portion of contract work that the contractee's architect or engineer has inspected and approved through a certificate. Work done but not yet certified is work uncertified, which is carried at cost. Cash received is a separate figure and is lower than work certified because of retention money.
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