contract.Below is information from the project accountant. Total Construction Fixed Price $25,000,000 Construction Start Date June 13, 2012 Construction Complete Date December 16, 2013 As of Dec. 31… 2012 2013 Actual cost incurred $11,500,000 $8,360,000 Estimated remaining costs $8,250,000 $- Billed to customer $9,000,000 $16,000,000 Received from customer $7,500,000 $16,500,000 Assuming Benny Building, Inc. uses the completed contract method, what amount of gross profit would be recognized
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reasonable limit on amounts and the bona fide requirement for profit motivation. 2. [LO 1] Is cost of goods sold deductible as a business expense for a business selling inventory? Explain. No. Under the return of capital principal, cost of goods sold represents a reduction in gross income rather than a business expense. For example, if a taxpayer sells inventory for $100,000 and reports a cost of goods sold of $40,000, the business’s gross income is $60,000 ($100,000 – 40,000) not $100,000. 3.
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certain goods or services to its group as a whole. Explain the general and major characteristics that differentiate G&NP organizations from profit-seeking entities? ------------------------------------------------- ------------------------------------------------- Suggested Solution ------------------------------------------------- Generally governments provide goods and services to the public regardless of whether the costs incurred will be recovered through charges for the goods and
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Decorus Dea Notes to Consolidated Financial Statements Notes 1 Summary of Significant Accounting Policies Nature of Operations: The Decorus Dea (the “Company,” “we” or “us”) business is focused on providing high end, off the runway clothing and beauty products of superior quality and value. Our stores are located in four different states, Georgia, Florida, California and New York and consist of 56 stores. Our stores are located inside traditional malls, outside shopping centers and through
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reports to assess accuracy, completeness, and conformance to reporting and procedural standards. • Report to management regarding the finances of establishment. • Establish tables of accounts and assign entries to proper accounts. • Develop, implement, modify, and document recordkeeping and accounting systems, making use of current computer technology. • Compute taxes owed and prepare tax returns, ensuring compliance with payment, reporting or other tax requirements. • Maintain or examine the records
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Fundamentals of Cost Accounting 3e William N. Lanen University of Michigan Shannon W. Anderson Rice University Michael W. Maher University of California at Davis FUNDAMENTALS OF COST ACCOUNTING Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2011, 2008, 2006 by The McGraw-Hill Companies, Inc. All rights reserved. No part of this publication may be reproduced or distributed in any form or
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internal, |4, 5, 6, 7, 8 | | | |and governmental auditors' responsibilities with respect to detecting | | | | |and reporting errors, irregularities, and illegal acts. | | | | | | |
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QRB/501 May 21, 2012 Ohidul Siddiqui Inventory Systems With the increasing demand to cut costs and increase revenues, developing the right inventory systems have become essential to compete in business. According to the Counselors to America’s Small Business, “Control of inventory, which typically represents 45% to 90% of all expenses for business, is needed to ensure that business has the right goods on hand to avoid product shortage and meet the consumer’s needs” (Counselors to America’s Small
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Index Cost Classification…………………………………………………………………2 Cost Volume Profit analysis……………………………………………………….2 Contribution Margin……………………………………………………………….2 Gross Margin and Contribution Margin…………………………………………...3 CVP Relationship in Graphic Form……………………………………………….3 CM Ratio. …………………………………………………………………………3 Application of CVP Concepts……………………………………………………..4 Importance of CM…………………………………………………………………4 Break-even Analysis………………………………………………………………4 Target Profit Analysis…………………………………………………………….5
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Client Understanding Paper Colleen Witten ACC/541 11/11/2013 Thomas Gruber Adjusting lower cost of market inventory on valuation, capitalizing interest on building construction, recording gain or loss on asset disposal and adjusting goodwill for impairment are all areas in which numbers on a financial statement can be distorted. There are rules and regulations regarding each one that a company should follow and auditing of these areas is necessary for financial statement compliance. Any organization
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