Overhead costs, Cost Accounting

Overhead Costs

Introduction

Overhead costs may be defined like the net cost of indirect materials, indirect expenses and indirect labour. They may happen or be charged to as:

a) Production cost centers that is making and packing and finishing departments.

b) Service costs centers as an example of power generation and maintenance

c) Other non-production cost centers as an example of administration and distribution and selling

In this section, we will look at how these overhead costs are changed to non-production and production departments then to determine the total cost incurred via every department in the organization.

Posted Date: 2/5/2013 6:41:46 AM | Location : United States







Related Discussions:- Overhead costs, Assignment Help, Ask Question on Overhead costs, Get Answer, Expert's Help, Overhead costs Discussions

Write discussion on Overhead costs
Your posts are moderated
Related Questions
Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor h

What is an advantage of using absorption costing? A. It permits a business to calculate the break-even point for production. B. It permits a business to calculate the total c

Average costing method has the following main advantages: 1.It is a realistic costing method useful to management in analyzing operating results and appraising future production

Behavioural Aspects of Standards Budgets and Standards rely heavily on the people who have to work to meet them. Since the detailed nature of standard costing and its involvem


what is accounting treatment for material losses due to abnormal reasons

QUESTION 1: PART A Swatathon Inc. has two production departments (A and B) and two service departments (maintenance and stores). Details of next year's budgeted overheads

Variance Analysis and Standard Costing Standard costing is defined with CIMA like a technique that uses standards for revenues and costs for the purpose of control via varianc

Under what conditions is a market-based transfer price optimal?

MARGINAL COSTING As per the Chartered Institute of Management Accountants, London, the phrase 'Marginal cost' means - 'the amount at every given volume of output through which