Is this an example of cash basis or accrual and the matching concept?
- Matching Principle!!! You have a small business that manufactures assembled watches. The manufacturing costs includes overhead with a utility bill for the month. This is manufacturing overhead, MOH. The MOH is applied with use of direct labor hours. In the month of December, no end item products were sold to customers. You did have a utility bill for January. Is this an example of cash basis or accrual and the matching concept?
- So with historical cost I have a question. So it’s all based on how much a item was majority sold for in or around some states that have the same value of dollar, by that I mean a dollar isn’t really worth as much in California compared to Louisiana. So how would historical cost affect that?