Tag Archives | 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, […]

Absorption of Overheads: Meaning and Methods | Accounting

In this article we will discuss about the meaning and methods of overhead absorption. Meaning of Overhead Absorption: CIMA defines Absorption of Overheads as “the process of absorb, overhead costs allocated or apportioned over a particular cost centre or production department by the units produced”. Absorption of overheads refers to charging of overheads to individual […]

6 Main Types of Plant Capacity Level | Cost Accounting

The following points highlight the six main types of a plant capacity levels. The types are: 1. Maximum Capacity 2. Practical Operating Capacity 3. Capacity to Make and Sell 4. Actual Capacity 5. Normal Capacity 6. Idle Capacity. Plant Capacity Level: Type # 1. Maximum Capacity: This is the cent per cent rated capacity of […]

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