1

We are talking about a company that produces its own products. Since the manufacturing costs also include part of the personnel costs, the personnel costs are recorded twice in the income statement. On the one hand, in the share for the production of the product in the cost of goods and on the other hand, the normal wage costs in the personnel costs. Do you know where I can find literature on the proper accounting of these business transactions?

Improve this question

1 Answer 1

Reset to default
2

This accounting-training site provides some example data and everything:

https://corporatefinanceinstitute.com/resources/knowledge/accounting/wage-expense/

Bottom line - every dollar of wages paid is either reported in the personnel costs section or the Production section.. not both.

Valid accounting principles universally prohibit reporting any expense twice on an income/expense report, whether you're talking about GAAP, IRS guidelines, Federal Accounting Regulations, or any other regulation framework.

Here is a search of the CFR (Code of Federal Regulations) on wages:

https://www.ecfr.gov/search?flag=invalid_reference&search%5Bquery%5D=wages

There are 2200 results, so.

Improve this answer

Not the answer you're looking for? Browse other questions tagged .