Companies use cost allocation to accurately determine the costs associated with production. Cost allocation tells the company what it spends on overhead during production process so accounting ...

Every business leader should probably have at least a rudimentary understanding of accounting. It’s not about becoming an accountant; it’s just about knowing enough not to get fooled or fool yourself.

It takes more than raw materials and shop workers to manufacture products. Factories need power, supplies and employees whose functions are essential to the operation even though they aren't part of ...

The most common mistake is allocating overhead as a percentage of job cost. This practice is so universal that we rarely meet a contractor who veers from it. For example, assume a painting contractor ...

Last month, we provided an article on overhead calculation and rate. That was Overhead Rates 101. In this month’s guest column, Ken Hedlund, Somerset CPAs (somersetcpas.com), introduces a more ...