The impact of World War II on cost accountancy in the U.S. may be viewed as a double-edged sword. Its most positive effect was engendering greater cost awareness, particularly among companies that served as military contractors and, thus, had to make full representation to contracting agencies for reimbursement. On the negative side, the dislocations of war, especially shortages in the factors of production and capacity constraints, meant that such “scientific management” techniques as existed (standard costing, time-study, specific detailing of task routines) fell by the wayside. This paper utilizes the archive of the Sperry Corporation, a leading governmental contractor, to chart the firm's accounting during World War II. It is concluded that any techniques that had developed from Taylorite principles were suspended, while methods similar to contemporary performance management, such as subcontracting, emphasis on the design phase of products, and substantial expenditure on research and development, flourished.
This paper examines certain interactions between American government and business which resulted in important innovations in the areas of budgeting and cost accounting early in the twentieth century. The evidence suggests that budgeting methods were initially developed by municipal reformers of the Progressive era and were subsequently adapted by business for planning and control purposes. In like fashion, standard costing and variance analysis were significant cost accounting techniques born to an industrial environment which came to contribute markedly to a continuing improvement of governmental budgeting procedures.
To be considered a business and not a hobby, a B&B must be operated with the intent of making a profit. Personal expenses must be clearly delineated from business expenses for tax purposes, and exclusive-use rules apply to most deductible expenses. Certain expenses may be deducted in full on the owner's tax return but others, such as start-up costs, improvements, appliances, and furniture-including eligible antiques-must be depreciated over time (some exceptions exist). Cash deposits collected to secure advance reservations require special tax treatment as do inventories of goods purchased for resale. B&B workers may be employees or independent contractors, and it's imperative to know the difference. The B&B's legal status will affect many aspects of its tax liability as well as that of its owners, partners, family-member employees, and shareholders. B&B owners and operators should be familiar with the IRS's Audit Guide for Bed and Breakfasts, which can help owners understand what may be asked of them in an audit and what third-party information is available to the IRS. The guide can also enhance the quality of B&B record keeping.
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