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Tech Master is an information technology (IT) consulting company offering services to small firms. TechMaster bills clients for its various services based on the hours its professionals spend. In August, IT professionals billed 875 hours to clients and worked a total of 920 hours(the difference includes time for training, preparing bids, and so on, which are considered administrative costs). TechMaster bills clients at the rate of $200 per hour; labor cost for its IT professionals is $75 per hour. Overhead costs in August totaled $35,000. Overhead is applied to clients at $45 per labor-hour. In addition, TechMaster had $55,000 in marketing and administrative costs (including labor time as described above). All transactions are on account. All services were billed.
Show labor and overhead cost flows through T-accounts.
Assets also include certain deferred charges that are not resources but that are recognized and measured in conformity with generally accepted accounting principles." Do you think this is a useful definition?
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Suggestions for improvement by convergence of US GAAP into IFRS
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