Managerial Accounting and cost concepts Flashcards

2-1 The three major elements of product costs in a manufacturing company are direct materials, direct labor, and manufacturing overhead. 2-2

Self-insurance means the assumption or retention of the risk of loss by the contractor, whether voluntarily or involuntarily. Residual value means the proceeds, less removal and disposal costs, if any, realized upon disposition of a tangible capital asset. It usually is measured by the net proceeds from the sale or other disposition of the asset, or its fair value if the asset is traded in on another asset.

Cost Estimating Handbook – NASA

Cost Estimating Handbook.

Posted: Wed, 09 Dec 2020 08:00:00 GMT [source]

Producer A then sells the non-originating cotton yarn to Producer B, also located in NAFTA country A, who uses the cotton yarn in the production of woven fabric of cotton provided for in heading 5208. Therefore, the woven fabric of cotton that Producer B produces from non-originating cotton yarn produced by Producer A is a non-originating good. Where applicable, a producer may choose that the calculation of the regional value content of motor vehicles referred to in Schedule VI be made in accordance with that schedule. The producer has a statement referred to in section 10 and chooses to use the value of non-originating material determined under that section. The statement states, as is permitted under section 10, the value of non-originating material used in the production of the water pump in accordance with section 12 over a period set out in section 12 and using a category set out in section 12. The engine producer designates the cast block as an intermediate material under section 7. For purposes of determining the origin of that cast block, because the aluminum ingot is classified under a different heading than the cast block, the cast block satisfies the applicable change in tariff classification and is an originating material.

Special Considerations for States, Local Governments and Indian Tribes

Where it can be shown that the seller and the producer buy from and sell to each other as if they were not related persons, the price actually paid or payable shall be considered as not having been influenced by the relationship between them. Dividing the total allowable indirect costs by an equitable distribution base. The result of this process is an indirect cost rate which is used to distribute indirect costs to individual Federal awards. The rate should be expressed as the percentage which the total amount of allowable indirect costs bears to the base selected. This method should also be used where a governmental unit’s department or agency has only one major function encompassing a number of individual projects or activities, and may be used where the level of Federal awards to that department or agency is relatively small.

2-1 The three major elements of product costs in a manufacturing company are direct materials, direct labor, and manufacturing overhead. 2-2

The regional value content of Good B is 42.9 percent, and Good B, therefore, does not qualify as an originating good. The regional value content of Good B is 76.5 percent, and Good B, therefore, qualifies as an originating good. Therefore, under the net cost method, Good A qualifies as an originating good, with a regional value-content of 54.5 percent.

Cost Object and Prime Costs

Is determined and supported as provided in paragraph of this section, when applicable. Costs of bonding required pursuant to the terms and conditions of the Federal award are allowable. Costs incurred by IHEs for, or in support of, alumni/ae activities are unallowable. Program outreach and other specific purposes necessary to meet the requirements of the Federal award. Whether 2-1 The three major elements of product costs in a manufacturing company are direct materials, direct labor, and manufacturing overhead. 2-2 the non-Federal entity significantly deviates from its established practices and policies regarding the incurrence of costs, which may unjustifiably increase the Federal award’s cost. Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the non-Federal entity or the proper and efficient performance of the Federal award.

When a Federal awarding agency terminates a Federal award prior to the end of the period of performance due to the non-Federal entity’s material failure to comply with the Federal award terms and conditions, the Federal awarding agency must report the termination to the OMB-designated integrity and performance system accessible through SAM . The Federal awarding agency and the non-Federal entity should, whenever practicable, collect, transmit, and store Federal award-related information in open and machine-readable formats rather than in closed formats or on paper in accordance with applicable https://business-accounting.net/ legislative requirements. A machine-readable format is a format in a standard computer language that can be read automatically by a web browser or computer system. The Federal awarding agency or pass-through entity must always provide or accept paper versions of Federal award-related information to and from the non-Federal entity upon request. If paper copies are submitted, the Federal awarding agency or pass-through entity must not require more than an original and two copies. When original records are electronic and cannot be altered, there is no need to create and retain paper copies.