In manufacturing companies, labor and materials costs are broken into direct and indirect components. Direct costs are those that can be traced directly to the products that are being produced, while ...

FASB Accounting Standards Codification (ASC) Topic 842, Leases, issued in February 2016, marked a significant overhaul in the financial reporting of long-term leases. Its adoption created many ...

For small businesses, proper accounting techniques can easily mean the difference between a profitable, well-run company and a struggling business. If a company accurately accounts for its expenses ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

Suzanne is a content marketer, writer, and fact-checker. She holds a Bachelor of Science in Finance degree from Bridgewater State University and helps develop content strategies. Investopedia / Paige ...

Cost accounting examines how a company spends money. All expenses are recorded and analyzed in detail and then reported to management, who uses this information to identify ways to increase efficiency ...

200.421 Advertising and Public Relations Costs Allowable only if related to and necessary for performance of the sponsored project (i.e., recruitment of personnel, procurement of goods and services, ...

What are cost transfers and why do we monitor them so closely? A Cost Transfer is the transfer of an expenditure, or cost, that initially posted to one project or account and is then transferred to ...

In a prior article, I wrote about the appeal of counting the Federal Government as a customer, because of the size of the government’s budget, as well as its creditworthiness. In that article, I ...

Federal regulations require that similar costs be treated consistently as either direct costs or indirect costs, in like circumstances. This regulation imposes a requirement on the University to ...

In the first article of this series of articles related to selling to the federal government, I discussed federal acquisition regulations (FAR), cost accounting standards (CAS) and the types of ...