If during the period of execution of a contract the price of material or labour rice beyond as certain limit the contract price will be increased by an agreed amount inclusion of such across in the contract D is called escalation class for material standard quantity multiple actual price minus standard price for labour standard hours multiple actual rate minus standard rate job is carried out in the premises and contract work as carried out on the site any order a unit lot or batch of product may be taken has cost unit then each contract is a cost unit if cost is first allocated to the cost centre and then charge it to individual job most of the expenses or of direct and or directly charged to respective control account it is a system of Costing in which the element of cost aur accumulated separately for each job or work undertaken by an organisation only general overheads and heads of his expense or appointed to individual contract the price of the jobs for fixed based on the nature of cost and policy of the firm the pricing is generally through hiding and external force have major influence in fixing the offer price the output of one process become the input of another process the end product usually is like unit not distinguishable someone another process maybe carried out either sequentially and parallel in case of single product sequential is possible in case of joint product parallel processing is possible after the split of point separate account has to be maintained for each and every process 1 to 1 input out reconciliation of quantity is not possible cost unit of the process account put of the process and the cost Centre is the process is last process is transferred to finished stock account it can be anticipated from the nature of the material Nature of operation it is an Unexpected gain in production under normal condition it will arise when loss under a process is less than the anticited normal figure that is the actual production exceed and expected figures the difference between actual and expected loss or actual and expected production is known as abnormal gain it should be debited in the process of form the cost of normal gain is computer on the basis of normal production abnormal gain is equal to actual output - expected output the total cost of normal process creditor to the process account which it arise to costing profit and lossness of workers improper training poor quality of raw material bad plant design or operation etc it cannot obviously be estimated in advance.