Vishwa2
Manager-finance
Pankajbhusari
Cost Accountant
Ramkrishna.1439
Jr.accountant

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Hi every one
iam new user i dont know to how to expose my question
one day my GM asked me to what is OVERHEAD HEADS in account but i did't give reply
please give me answer any one to this question
thank you
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IN ANY TYPE OF PRODUCTION PROCESS THERE ARE THREE TYPES OF EXPENSES MATERIAL, LABOUR AND OVERHEADS. OVERHEAD HEADS ARE FACTORY OH, ADMINISTRATIVE OH AND SELLING OH
I will just improvise this. It is indirect expenses that are incurred for production/generating service and are not directly identifiable with final product. It can be apportioned on approapriate basis.
To take an example, Factory rent can be apportioned over units produced.
rgds
vishwanath
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