It appears that Toll Brothers assigns overhead to cost objects in two ways. First, see page 17, the 10-K says “Land, land development and related costs (both incurred and estimated to be incurred in the future) are amortized to the cost of homes closed based upon the total number of homes to be constructed in each community.” In other words, each home is assigned an equal share of overhead costs. Page 17 also says, “The estimated land, common area development and related costs of master planned communities (including the cost of golf courses, net of their estimated residual value) are allocated to individual communities within a master planned community on a relative sales value basis.” In other words, higher priced communities within a master planned community are assigned a greater portion of master planned community overhead costs. In master planned communities, the allocation of
This is the end of the preview. Sign up
access the rest of the document.
This note was uploaded on 05/21/2011 for the course ACC 505 taught by Professor Willis during the Spring '09 term at DeVry Chicago.