0
In job cost accounting how are general and administrative costs allocated?
Wiki User
∙ 13y ago
Different Accountants have different methods based upon the level of accurate job cost detail desired. We determine the number of products under construction during the chosen time period (typically a month), how many active and inactive weeks each product spent in production and allocated indirect costs accordingly.
In this case it is houses under construction. Active construction weeks get charged for both overhead and payroll costs and inactive (field work on hold) only overhead. Overhead and indirect payroll costs are determined for the month and applied to the jobs accordingly.
Wiki User
∙ 13y ago
General and administrative costs are typically allocated to jobs based on a predetermined allocation rate or percentage. This rate is often calculated by dividing the total general and administrative costs by a certain cost driver, such as direct labor hours or direct labor costs, that is relevant to the jobs being worked on. This allows for a fair distribution of these costs across all jobs based on their usage of the cost driver.
Add your answer:
Earn +20 pts
Limitations of cost accounting?
Some limitations of cost accounting include: Not capturing all intangible costs and benefits, such as employee morale or brand reputation. Tendency to focus on historical data rather than future-oriented analysis. Can be complex and time-consuming to implement accurately, leading to potential errors or biases in the information provided.
What are the advantages of the weighted average method?
The weighted average method is advantageous because it smoothens out fluctuations in inventory costs by incorporating both old and new cost data. It is simple to calculate and less subject to distortions from extreme price changes. This method is also compliant with generally accepted accounting principles (GAAP).
Is interest a fixed cost?
No, interest is considered a variable cost because it can change based on the amount borrowed, the interest rate, and the length of time the funds are borrowed for. Fixed costs, on the other hand, remain constant regardless of the level of production or sales.
What are the objectives of wage and salary administration in business firm?
The objectives of wage and salary administration in a business firm are to ensure fair compensation for employees based on their skills and experience, to attract and retain talent, to motivate employees to perform at their best, and to maintain cost control and competitiveness in the market.
Law of decreasing opportunity cost?
The law of decreasing opportunity cost states that as a producer shifts resources from one good to another, the opportunity cost of producing additional units of the second good will decrease. This is because resources are not equally productive in all activities, leading to diminishing returns as more resources are allocated to a single activity.
What are the advantages of excess of loss reinsurance?
- Simplified accounting procedures - Low administrative costs
Which general staff position of the incident command system manages costs related to the incident and provides accounting procurement time recording and cost analyzes?
Finance/Administrative Section Chief.
How would you describe fully absorbed costs?
Fully absorbed costs refer to costs where the firm has allocated fixed manufacturing costs to products produced or divisions within the firm as required by generally accepted accounting principles.
Which General Staff position manages costs related to the incident and provides accounting procurement and cost analyses?
Which General Staff position manages costs related to the incident, and provides accounting, procurement, and cost analyses
What is the traditional costing formula?
Traditional costing is a method in accounting where the manufacturing overhead costs are allocated to the products manufactured. It is also called as conventional costing.
Examples of non relevant cost?
Examples are Sunk Costs, Fixed costs and Allocated Costs.
What are Both traced direct costs and allocated indirect costs?
cost assignments
How do you calculate the cost per unit?
Vague question. Here's my attempt. Simple cost is an accumulation of input costs. It is important to include all costs. i.e.(time, material, overhead). It can be actual costs or replacement costs. That gets into pricing, accounting, taxation, and banking. I recommend looking in financial accounting and cost accounting to see which fits best. A general rule: Total manufacturing costs/ total produced units
Which general staff position manages costs related?
The general staff position that manages costs related to incidents is the incident commander. Some of the responsibilities include accounting, procurement and cost analysis among others.
Which general staff position manages costs related to the incident and provides accounting procurements time recording and cost analyzes?
me
If non-traceable costs are not allocated to the various operating units within an organization who ends up paying these costs?
The organization would end up incurring the costs unless that organization has an allocated percentage within their contribution margin to cover such costs.
Describe typical critriia that determine work methods for routine types of projects?
General and administrative costs and Direct costs are the criteria that determine work methods for routine types of projects.
