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 ...

Manufacturing overhead – also called indirect costs – are any costs that a factory incurs other than direct materials and direct labor needed to manufacture goods, notes "Accounting 2," a reference ...

Discover how absorption costing is used in GAAP for external reporting. Learn its components and why it's essential for ...

Welcome back to the Cost Corner, where we provide practical insight into the complex cost and pricing requirements that apply to Government contractors. This is the second article in a multi-part ...

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 ...

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 ...

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 ...

This instruction identifies specific items of costs that are either allowable or unallowable on sponsored accounts and specifies which allowable costs are treated as direct costs and which are treated ...

Welcome back to the Cost Corner, where we provide practical insight into the complex cost and pricing requirements that apply to Government contractors. This is the third article in a multi-part ...

Until now, cost accounting as a useful tool in hospital financial decision-making has been widely ignored. Although the RCC (ratio of cost to charges) approach still used by 70 percent of healthcare ...