Difference between revisions of "Accruals"

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(Created page with "Accruals are not so much a type of costs, but more of a mechanisms for getting a type of costs recorded in the period for which benefits are received for those costs. Compani...")
 
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Accruals are not so much a type of costs, but more of a mechanisms for getting a type of costs recorded in the period for which benefits are received for those costs.  Companies typically use accruals to capture costs for which they have yet received a bill, however, those costs were incurred for the current period, whether or not they have received a bill.   
 
Accruals are not so much a type of costs, but more of a mechanisms for getting a type of costs recorded in the period for which benefits are received for those costs.  Companies typically use accruals to capture costs for which they have yet received a bill, however, those costs were incurred for the current period, whether or not they have received a bill.   
  
Accruals made in accordance with Generally Accepted Accounting Principles are allowable for contract cost purposes.   
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==Allowable/Unallowable==
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Accruals made in accordance with Generally Accepted Accounting Principles are '''allowable''' for contract cost purposes.   
  
Cost Accounting Standard (CAS) - Cost Accounting Period, is the related CAS.
 
  
 
[[Category: Costs - Allowable or Unallowable]]
 
[[Category: Costs - Allowable or Unallowable]]
  
 
[[Category: Cost Accounting Standards (CAS)]]
 
[[Category: Cost Accounting Standards (CAS)]]

Revision as of 14:38, 21 August 2014

Accruals are not so much a type of costs, but more of a mechanisms for getting a type of costs recorded in the period for which benefits are received for those costs. Companies typically use accruals to capture costs for which they have yet received a bill, however, those costs were incurred for the current period, whether or not they have received a bill.

Allowable/Unallowable

Accruals made in accordance with Generally Accepted Accounting Principles are allowable for contract cost purposes.