You have just made it to Manager at a mid-sized accounting firm. You have always wanted to
Question:
You have just made it to Manager at a mid-sized accounting firm. You have always wanted to introduce ABC as a method for tracing internal costs. You have done research on the standards used in firms of this size.
Position Billing Rate/Hr
Currently there are : -
Senior Partner $250.00
- Junior Partner 150.00
Total Billing rates $400.00
All partners have billing rates consistent with professional practice standards and clients are billed on the basis of partners’ billing rates, plus 20% of partners’ billing rates as an overhead charge to cover all indirect costs.
Two clients were billed for work performed during the month just ended as follows:
Senior Partner Junior Partner Totals___
Delta Corp. 10 Hours 15 Hours 25 Hours
Zeno Ltd 15 Hours 10 Hours 25 Hours
Total CPA Hrs 25 Hours 25 Hours 50 Hours
Required:
Please provide the details of the invoice that would be prepared on the above basis for billing the individual clients.
Invoice: Time Charges Overhead Total Charges
Senior Partner Junior Partner
Client : Delta Corp
Zeno Ltd
