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Management accounting query: Costs
03-29-2011, 08:41 AM
Post: #1
Management accounting query: Costs
Firstly, My sincere apologies if this is in the wrong forum header.

Basically I am trying to teach myself management accounting for my business. I have a question in relation to the account period.
Our accounting period is from September to August. However we report our sales based on Jan to Dec. When I build up my cost accounts, I am working out the direct costs associated with a specific project, but there are some direct costs that are from the previous sales period (IE some costs are from November 2010).

Do you only include costs in the 2011 period (Jan 2011 to Dec 2011) or do you take in to account all costs for that project regardless of period??

Many thanks in advance for your help
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03-31-2011, 10:36 PM
Post: #2
 
I think all the cost associated with that project over its life should be included as its not management accounting for a specific year but its for a specific project.
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03-31-2011, 11:00 PM
Post: #3
 
Ohhh ok now i see its managment accnt for a year so i think only current year cost should be recorded as last years management accounts would have accounted for cost up till last year.
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