Tag Archives | Overheads Accounting

Administration Overhead | Overheads Accounting

The below mentioned article provides a note on administration overhead. According to ICMA Terminology, Administrative overhead is defined as "the sum of those costs of general management and of secretarial accounting and administrative services, which cannot be directly related to the production, marketing, research or development functions of the enterprise." The administration cost is incurred for carrying the administrative function [...]

By |2016-12-12T08:06:17+00:00December 12, 2016|Overheads|Comments Off on Administration Overhead | Overheads Accounting

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 payment of interest or not [...]

By |2016-12-12T08:06:17+00:00December 12, 2016|Overheads|Comments Off on Arguments For and Against Inclusion of Capital | Accounting

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 incurred for weighing salaries of [...]

By |2016-12-12T08:06:17+00:00December 12, 2016|Overheads|Comments Off on Treatment of Special Items of Overheads in Cost Accounts
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