Costing Method

Hi i read advertisements about Bailey bridges for sale by private and governments. They use government accounting and i am sure they use abortion coating if the job is done by governments. They have all sorts of procurement by themselves. If it's private people, it's contract basis to build a bridge and they participate in a tender and have to finish it off within a budget. This is also absorption costing cum contract costing. But we also have to understand that overhead allocation is what is important. If the private company can allocate overheads to profits while other costs can be allocated to the bridge with or without a markup. It's a matter of company policy.