0
Administrative overheads are the indirect expenses used to run the business and expenses incurred to run the day to day business activities which does not have direct relationship with the manufacturing of product but without it business cannot be run like office administration staff salaries etc
What else can I help you with?
What is included in direct overheads and what is included in indirect overheads?
The items which are included in direct overheads are the ones which are directly related to production process like salaries of machine operators and buying raw materials. The ones that are included in indirect overheads do not relate to production like giving to charity among others.
What is the difference between variable overheads cost variance andfixed overheads cost variance?
Variable overhead cost variance is that variance which is in variable overheads costs between the standard cost and the actual variable cost WHILE fixed overheads cost variance is variance between standard fixed overhead cost and actual fixed overhead cost.
Difference between marginal cost accounting statements and absorption cost accounting statement?
marginal costing considers only direct) materials,labour,expenses and variable factory overheads excluding fixed factory overheads but absorption considers (direct) materials ,labour,expenses,variable and fixed factory overheads.
What is the differences between activity-based costing and traditional product costs?
In traditional costing, overheads are allocated using blanket rate while in activity based costing overheads are allocated by the activities performed.
What is general fixed overheads?
General fixed overheads refer to the ongoing business expenses that do not fluctuate with production levels. These costs typically include rent, salaries, utilities, and insurance, which remain constant regardless of the volume of goods or services produced. Understanding these overheads is crucial for budgeting and financial analysis, as they impact overall profitability and pricing strategies.
What are overheads in construction law?
In construction law, overheads refer to the indirect costs associated with a construction project that are not directly attributable to specific tasks or materials. These can include expenses such as administrative costs, utilities, office supplies, and salaries of supervisory staff. Overheads are typically calculated as a percentage of direct costs and are crucial for determining the total project budget and ensuring that contractors are adequately compensated for their expenses. Properly accounting for overheads is essential to avoid disputes and ensure financial viability.
What are non production overheads?
Non production overheads are costs associated with the workings of a company. These costs do not go directly into making the item. For example, electricity or office space are non production overheads.
What is included in direct overheads and what is included in indirect overheads?
The items which are included in direct overheads are the ones which are directly related to production process like salaries of machine operators and buying raw materials. The ones that are included in indirect overheads do not relate to production like giving to charity among others.
What are preliminaries and overheads?
Preliminaries refer to the initial activities and preparations that set the stage for a project or task, such as planning, research, and organizing resources. Overheads, on the other hand, are the ongoing costs associated with running a project or business that are not directly tied to a specific product or service, like utilities, administrative expenses, and salaries. Together, both concepts are essential for understanding the full scope of project management and budgeting.
What is the difference between variable overheads cost variance andfixed overheads cost variance?
Variable overhead cost variance is that variance which is in variable overheads costs between the standard cost and the actual variable cost WHILE fixed overheads cost variance is variance between standard fixed overhead cost and actual fixed overhead cost.
What ara overheads cost?
Overheads are the ongoing expenses of operating a business that are not directly tied to producing a product or service. They include costs such as rent, utilities, salaries of non-production staff, and office supplies. Overheads are essential for maintaining daily operations but do not contribute directly to revenue generation. Properly managing overheads is crucial for maintaining profitability and efficiency.
Are postage and stationery business overheads?
yes.
What is meant by the terms under-absorption and over-absorption of fixed overheads how they arise and how they are calculated?
Over or Under AbsorptionNote that as long as planned level of activity and the actual level of activity is not the same there is always an Over or Under Absorption situationThis is because overhead absorption rate is set at the start of the period based upon an expected level of production and that during the period, the level of output and or overheads will be different from the planned overheads and or output.OVER-absorption occurs when the total overhead recovered or absorbed is GREATER than the actual level of overheads for the period.UNDER-absorption occurs when the total overheads recovered or absorbed is LESS than the actual overheads incurred in the period.
What are the advantage of cottage indutries?
Low overheads and diversity of products
Difference between marginal cost accounting statements and absorption cost accounting statement?
marginal costing considers only direct) materials,labour,expenses and variable factory overheads excluding fixed factory overheads but absorption considers (direct) materials ,labour,expenses,variable and fixed factory overheads.
How do you identify under and over absorption?
Over or Under AbsorptionNote that as long as planned level of activity and the actual level of activity is not the same there is always an Over or Under Absorption situationThis is because overhead absorption rate is set at the start of the period based upon an expected level of production and that during the period, the level of output and or overheads will be different from the planned overheads and or output.OVER-absorption occurs when the total overhead recovered or absorbed is GREATER than the actual level of overheads for the period.UNDER-absorption occurs when the total overheads recovered or absorbed is LESS than the actual overheads incurred in the period.
What are some reasons as to why overheads increase?
Overheads can increase due to several factors, including rising costs of raw materials and supplies, which can lead to higher production expenses. Additionally, inflation can drive up utility and labor costs, impacting overall operational expenses. Increased regulatory compliance requirements may also necessitate additional administrative resources, thereby raising overhead costs. Finally, inefficiencies in operations or the need for investment in technology can contribute to elevated overhead levels.
