accounting

M is designing and building a special computer for D. The price for the new computer is equal to M's costs of building it plus a flat fee of $50,000.

M's expense accounts:

Emloyment Costs:
Wages & salaries, including vacation pay and sick leave
Social security taxes
Plant and Machinery Costs:
Depreciation
Repair and maintenance
Plant protection
Selling

General and Administration
Financing

Question: How should the computation of M's costs be apprached in the contract between M and D? Are there any problems calling for special attention?

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