Explain capitalize direct labor costs

Reference no: EM1341221

Capitalize direct labor costs

My boss wants me to credit salary expense and debit inventory for work performed on an asset. The asset could sit on the books for a long time. This would be understating expenses. What is the correct way to allocate direct labor costs to an asset and still show an accurate salary expense? Is it ok to capitalize payroll costs?

Reference no: EM1341221

Questions Cloud

Important information about labor and employment laws : Important information about labor and employment laws - What challenges do you see with interpreting labor and employment laws and court decisions?

Explain what was union carbide''s strategy : Explain What was Union Carbide's strategy and organizational structure and where did they fail and How would you, with proper strategies and operational processes, not allow an event like this to happen?

Explain labor unions and customs union : Labor Unions and Fixed Costs - What are the differences between labor unions and customs union

Railway labor act : Complete an in-depth analysis of the Railway Labor Act (RLA), including its amendments, judicial interpretations and administrative law. Also, tie this in/relate to labor relations.

Explain capitalize direct labor costs : What is the correct way to allocate direct labor costs to an asset and still show an accurate salary expense and Is it ok to capitalize payroll cost

Explain the components of bottom-up and top-down approaches : Explain the components of bottom-up and top-down approaches to managing labor costs and decide which would be most important to use in either your current work environment or one with which you are familiar.

Managing labor costs : Explain the components of bottom-up and top-down approaches to managing labor costs

Strike fund held by not for profit organization : Strike fund held by not for profit organization and Do you think that a not-for-profit organization's board can release the restrictions on money in a strike fund and use it for General operations?

Change in american workforce : Prepare a paper in which you describe both sides of the issue and From a union perspective, what steps can be taken to ensure that membership is maintained and those unions remain strong and healthy?

User Account

All Pages