Tag Archives | Overheads Accounting

Notes on Spoilage | Materials

The below mentioned article provides a note on accounting and control of spoilage. Meaning of Spoilage: Spoilage is the production that fails to meet quality or dimensional requirements and these are so damaged in manufacturing operations that they are not capable of rectification economically and hence taken out of the process and disposed off without further processing. If spoilage is [...]

By |2016-12-12T08:06:17+00:00December 12, 2016|Overheads|Comments Off on Notes on Spoilage | Materials

Production Overhead | Accounting

The below mentioned article provides a note on production overhead. The production cost is inclusive of all direct material, direct labour, direct expenses and manufacturing expenses. The manufacturing expenses is inclusive of all indirect materials, indirect labour and indirect expenses concerned with manufacturing activity which starts with supply of materials and ends with primary packing of the product. Production cost [...]

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

Single and Departmental Overhead Absorption Rates | Accounting

In this article we will discuss about the single and departmental overhead absorption rates. Single Overhead Absorption Rate: It is also called as 'blanket overhead absorption rate'. It is a common absorption rate used throughout a factory and for all jobs and units of output irrespective of the departments in which they were produced or processed. It is a one [...]

By |2016-12-12T08:06:17+00:00December 12, 2016|Overheads|Comments Off on Single and Departmental Overhead Absorption Rates | Accounting
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