ABSTRACT
This chapter discusses cost accounting functions that are especially applicable to projects. Overhead cost recovery is a complex function that can give cost and management accountants some difficulty. Costs arising from running the business, such as providing the management framework and paying senior managers’ salaries, paying for the maintenance of premises, paying business rates and so on are all overhead costs. The responsibility for collecting, analysing and reporting project costs will usually fall upon the project management office. One or more cost engineers will perform the analysis, relying on cost data from the purchasing and accounts departments. The frequency of cost reports will depend to some extent on the size and duration of the project. For megaprojects lasting several years, cost reports might be issued at quarterly intervals but for many smaller projects monthly reporting is more appropriate.
