Archive | Overheads

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, […]

Notes on Scrap | Materials

The below mentioned article provides a note on scrap. Scrap is the residue material that has a recovery value. It is incidental residue from the materials used in manufacturing operations which is recoverable and measurable without processing. Accounting of Scrap: The accounting treatment of scrap is based on the following considerations: (a) If the value […]

Notes on Defectives | Materials

The below mentioned article provides a note on defectives. Defectives represent the part of production that does not meet dimensional or quality specifica­tions of a product but which can be reworked by additional application of material, labour and/ or processing and made it into saleable condition either on first or seconds depending upon the characteristic […]

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