An accounting professional requires at least two skill sells. The first is to be technically...
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Accounting
An accounting professional requires at least two skill sells. The first is to be technically competent. Knowing how to capture, manage, and report information is a necessary skill. Second, the ability to assess manager and employee actions and biases for accounting analysis is another skill For instance, knowing how a person is compensated helps anticipate information biases. Draw on these skills and write u half-page memo to the financial officer on the following practice of allocating overhead. Background: Assume that your company sells portable housing to both general contractors and the government. It sells jobs to contractors on a bid basis A contractor asks for three bids from different manufacturers. The combination of low bid and high quality wins the job. However, jobs sold to the government are bid on a cost-plus basis. This means price is determined by adding all costs plus a profit based on cost at a specified percent. such as 10%. You observe that the amount of overhead allocated to government jobs is higher than that allocated to contract jobs. These allocations concern you and motivate your memo
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