Overheads and Its Types [with Accounting Treatment]| Cost Accounting

Overheads are costs, which are not traced directly to cost units. In other words, over­head is the total of indirect material costs, indirect labour costs, and indirect expenses. The terms 'burden', 'supplementary costs', 'on costs', and 'indirect expenses' are used interchangeably for overhead. Overheads are aggregated under some account head (e.g. supervisors' salary, office lighting, depreciation, and building up-keep) and [...]