Difference between revisions of "Accruals"
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Accruals made in accordance with Generally Accepted Accounting Principles are '''allowable''' for contract cost purposes. | Accruals made in accordance with Generally Accepted Accounting Principles are '''allowable''' for contract cost purposes. | ||
Revision as of 14:39, 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
Allowable
Accruals made in accordance with Generally Accepted Accounting Principles are allowable for contract cost purposes.
