Steps in Overhead Accounting: 5 Steps | Cost Accounting
The following points highlight the five main steps in overhead accounting. The steps are: 1. Classifications of Overheads Costs 2. Codification of Overheads 3. Collection of Overheads 4. Departmentalisation of Overheads 5. Absorption of Overheads. 1. Classifications of Overheads Costs: Overheads can be classified on the basis of number of characteristics. The following are the important basis of overhead classification: [...]