Archive | Overheads

Arguments For and Against Inclusion of Capital | Accounting

In this article we will discuss about the arguments for and against inclusion of capital. Arguments in Favour of Inclusion: (a) When wages is the reward of labour, interest is the reward of capital. (b) Interest should either be ignored entirely or else included in respect of all capital employed whether such capital requires the […]

Treatment of Special Items of Overheads in Cost Accounts

In this article we will discuss about the treatment of special items of overheads in cost accounts. Material Handling Expenses: These expenses are incurred while unloading the raw materials received from supplier, storing the raw materials, handling the raw materials to work place, handling of work-in-progress, storage of finished goods etc. It also includes costs […]

Overheads: Definition and Collection | Labour

In this article we will discuss about:- 1. Definition of Overheads 2. Meaning of Chargeable Expenses 3. Steps in Accounting of Overheads 4. Classification and Codification of Overheads 5. Collection of Overheads 6. Cost Allocation 7. Allocation and Apportionment of Overheads. Definition of Overheads: CIMA defines Overhead Cost as “the total cost of indirect materials, […]

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