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Business, 19.02.2020 22:24 LizzieS8167

Assume that your company sells portable housing to both general contractors and the government. It sells jobs to contractors on a bid basis. A contractor asks for three bids from different manufacturers . The combination of low bid and high quality wins the job. However, jobs sold to he government are bid on a cost plus basis. This means prices is determined by adding all costs plus a profit based on cast at a specified percent. such as 10%. You observe that the amount of overhead applied to government jobs is higher than that applied to contact jobs. These allocations concern you. Write a short memo to your company's CFO outlining your concerns with overhead allocation.

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Assume that your company sells portable housing to both general contractors and the government. It s...
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