Calculate actual costs of work performed, Cost Accounting

This is defined as an actual amount paid or incurred, as opposed to estimated cost or standard cost. In contracting, actual costs amount includes direct labor, direct material, and other direct charges.

This is also known as the specific identification method where by the actual cost incurred relatively to the specific item of stock is allocated to that item. Many companies do not know when the units in stock at the end of an accounting period were purchased. Even if they could, many companies may not consider the cost involved in obtaining this information justified. Under these circumstances the valuation of stock becomes a matter of a policy as to which units of stock are consider or deemed to have been issued and consequently which units are deemed to remain.

The actual cost of a project represents the true total and final costs accrued during the process of completing all work during the pre-determined period of time allocated for all schedule activities as well as for all work breakdown structured components. Actual costs are primarily made up of a number of specific items including, but not limited to, cost in direct labor hours, direct costs alone, and also all costs including indirect costs. Actual costs, when possible, should be thoroughly itemized in detail throughout the project as opposed to merely compiled at the end as it is easier to accurately itemize costs when it is done as the expenditures occur. The term actual cost can also be referred to as actual costs of work performed (AWCP).

Posted Date: 2/28/2013 4:57:53 AM | Location : United States







Related Discussions:- Calculate actual costs of work performed, Assignment Help, Ask Question on Calculate actual costs of work performed, Get Answer, Expert's Help, Calculate actual costs of work performed Discussions

Write discussion on Calculate actual costs of work performed
Your posts are moderated
Related Questions
Advantages and Disadvantages of Group Bonus Plan Benefits associated along with group bonus schemes involve i. It encourages teamwork and cooperation among workers ii.

Cost Benefit Approach - Terms Used in Cost Accounting Is the primary criterion for selecting with alternative accounting approaches? There is a direct relationship in a co

High-Low method of cost estimation and Number of Photocopies as the cost driver, what would be the resulting cost equation for Maintenance Costs?

Absorption vs. Variable Costing Varilux manufactures a single product and sells it for $10 per unit. At the beginning of the year there were 1,000 units in inventory. Upon further

Atkinson's Reliable Tools makes two products that use similar raw materials: #587Q and #253X. Estimated production needs for a unit of each product follows. #587Q #253X Steel (in p

Logan Corporation issued $800,000 of 8% bonds on October 1, 2006, due on October 1, 2011. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to y

G. Mills was appointed a local agent for the High Power Mobile Workshop Bolt (HPMW-B) on 1 April 2009. The HPMW-B is manufactured by Mobile Equipment Ltd (MEL). The company charges

The use of standard costs can present a number of potential problems or disadvantages. Most of these problems result from improper use of standard costs and the management by excep

discuss the problems of installing a costing system

Illustration of Overhead Variance Analysis Again for intentions of our demonstrations in overhead variance analysis, we will suppose the given basic data for company in the pr