Allocating Indirect Costs

Accounting for And Allocating Indirect Costs:

Allocating indirect costs are as important as direct job costs. Although, these costs are not directly related, they are still costs that need to be accounted for to obtain the true costs of the jobs.

So,  how do we account for these indirect costs?

For Further Reading:

Allocating Indirect Costs IRS.GOV

Basic Accounting Policy for Contracts

In Accounting for contracts, the basic accounting policy decision is the choice between the two generally accepted methods: the percentage of completion method including units of delivery and the completed contract method.

Continue reading “Basic Accounting Policy for Contracts”