Vikas

Cost Accounting

Cost Accounting 
If Liberty Tax Service were to use a job order costing method their cost sheet would show the forms used in their preparation of customer's taxes.  These would be considered direct materials.  For the overhead costs you would see such things as their expenses for copiers and printers.  This would likely include paper and ink, also included in the overhead costs would be the rent on their building, their employees and any up keep on their building as well as utility bills.  If the same cost sheet were done using the costing method for a manufacturing  business the direct materials would include any material that is purchased for the purpose of completing the finished product.  Overhead costs on a cost sheet would include labor, rent on buildings and equipment, any repair and/or maintenance on buildings or equipment, taxes and insurances.
The categories of direct labor costs you may see for Liberty Tax Service would linclude employee salaries.  As stated one of the big reasons that Liberty Tax Service has grown so quickly is due to their presence and those uncle sam's and lady liberty's they have standing on the street would be part of their direct labor costs.  These are temporary people they bring on during their high demand times.  Their overhead costs would include any space they may be renting during their tax season as well as any equipment they purchase or repair.

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04 Jan 2016

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  1. Vikas

    Cost Accounting

    The categories of direct labor costs for the Liberty Tax Service ****** ******
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