4

Overheads Classification, Distribution and Control

LEARNING OBJECTIVES

After studying this chapter you should be able to:

  1. Understand the term “overheads”.

  2. Classify the overheads into different categories.

  3. Understand the constituents of factory overeads, office overheads, and selling and distribution overheads.

  4. Segregate costs into fixed and variable kinds.

  5. Ascertain semi-variable overheads by various methods.

  6. Understand the term “allocation” and “apportionment” of overheads and the basis of apportionment of overheads.

  7. Understand “inter-service distribution” and different methods of apportionment of overheads.

  8. Appraise the various methods involved in absorption of factory overheads.

  9. Distinguish between the actual overhead rate and pre-determined ...

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