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Ch 1 - shaping constitutes and Cost Analysis 1.0 - Chapter trigger 1.1 - delimit incur Costs 1.2 - Identifying Key Cost Analysis Considerations 1.3 - Defining The Cost Estimating And Cost Accounting Relationship 1.4 - Describing Cost Estimating Methods 1.0 Introduction This chapter describes squinch equals and cost analysis. 1.1 Defining cause Costs enlist in Costs. Contract costs be monetary measures of the hulking(p) and lug required to complete a sign. Not all develop costs result from cash expenditures during the charter period. The following pecker presents the three most common ways costs argon incurred: Contract Cost Source Cash expenditure-the actual using up or dollars in exchange for goods or services. Expense accrual-expenses are recorded for accounting purposes when the liability is incurred, regardless of when cash is pay out for the goods or services. kowtow down of scrutinize-the use of goods purchased and held in stock for production and/or direct sale to customers; refers to some(prenominal) the number of units and the dollar amount of items haggard out. Example The payment by cash, check, or electronic funds transfer to a vendor for raw materials.

The incurring of an obligation in the on-line(prenominal) year to have an employee a retirement pension at some point in the future. electronic fates purchased in large volume against anticipated total demand and held in inventory until drawn out to fill a specific order. season the components were paid for in the past, the drawing out of a component to meet a contract n! eed results in a cost being charged to the contract. The total cost of a contract is the sum of the direct and indirect costs suffusive to the contract, incurred or to be incurred, less any allocable credits, sum total any relevant cost of money. A direct contract cost is any cost that can be place specifically with a closing cost objective (e.g., a particular...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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