I need to find several companies who would have both government and commercial customers.
Also, I need to explain why those companies would likely use job costing for its products sold to government.© BrainMass Inc. brainmass.com June 3, 2020, 6:30 pm ad1c9bdddf
(P.S: The list of companies is below the answer)
I need to find several companies who would have both government and commercial customers. Also I need to explain why those companies would likely use job costing for its products sold to government.
Because in order to manage government contract costs, a firm needs to meet the federal government's published cost accounting standards which track all costs in accordance with the Cost Accounting Standards. These standards require tracking all costs for a government contract, accumulating actual direct costs by labor category and job and indirect costs by allocating these costs using provisional, budgeted, or actual burden rates. Unallowable costs should be tracked and segregated according to the rules in the Federal Acquisition Regulation (FAR). The cost accounting system must account for uncompensated overtime, bids, proposals, and research and development costs. The system should also track employee labor by intermediate and final contract objectives and generate accurate and timely invoices.
Government cost accounting standards require that a company maintain a job cost system, where the "job" is a government contract. Job costing is usually an afterthought and not necessarily a critical part of a typical accounting system, like general ledger or payroll. In some firms the government contract accounting system is a modified ...
You will find the answer to this puzzling assignment inside...