Cost Element Question:
What are overheads? How are they classified?
Answer:
Overheads are the aggregate of Indirect Material cost, Indirect Labour and Indirect Expenses. Thus, sum of all indirect costs are overheads. They are of three types:
-Factory Overheads
-Office and Administration Overheads
-Selling and Distribution Overheads
-Factory Overheads
-Office and Administration Overheads
-Selling and Distribution Overheads
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