Small businesses that manufacture products are required to account for all of the costs of production. One of these costs, overhead, is the cost of production that cannot be individually traced to ...

Cost allocations using the direct labor method of accounting work the best when a business produces only one or two types of products. Using this traditional method of determining a company's labor ...

Overhead allocation is a source of great disagreement in our industry. Should the allocation be based on job price? On job cost? Per project? Or per field man-hour. We understand the pros and cons of ...