Portion of overhead costs-rent, lights, insurance-allocated to manufacturing, by the application of a standard factor termed a burden rate. This amount is absorbed as an Inventory cost and ultimately reflected as a Cost of Goods Sold.
Direct Overhead
| Financial & Investment Dictionary: Direct Overhead |
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| Business Dictionary: Direct Overhead |
Portion of Overhead costs=rent, lights, insurance=allocated to manufacturing by the application of a standard factor termed a burden rate. This amount is absorbed as an Inventory cost and ultimately reflected as a Cost of Goods Sold.
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 | Overhead (finance term) |
| Conversion Cost (in accounting) |
| Input Cost (in accounting) |
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 | Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| Business Dictionary. Dictionary of Business Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved. Read more |
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Mentioned in
- Overhead (finance term)
- Conversion Cost (in accounting)
- Input Cost (in accounting)
- Manufacturing Costs (in accounting)
- Prime Cost (in accounting)
- Total Manufacturing Costs (in accounting)
- Cost of Goods Sold (finance term)
- Variance (business term)
- Absorbed (finance term)
- Factory Ledger (in accounting)
- Manufacturing Cost Flow (in accounting)
- Product Unit Cost (in accounting)
- Indirect Cost (business term)
- time and material contract (industrial engineering)
