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    lady4444's Avatar
    lady4444 Posts: 1, Reputation: 1
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    #1

    Nov 11, 2006, 06:12 PM
    Accounting
    How should the cost accountant of a small company that manufacture plastic boxes assign factory overhead to plastic boxes made in January? Should only factory overhead bills received and paid in January be assigned to the production of boxes in January?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Nov 12, 2006, 04:27 PM
    No.

    Accrual base accounting. Record all expenses accrued, regardless if you have received and/or paid the bill for it.
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