In this article we will discuss about the treatment of special items of overheads. 1. Interest on Capital: Different people have different of opinion on the question as to whether interest on capital should be included in cost or not. This so because, whether a concern pays interest on capital or not, depends upon its method of capitalisation. This means [...]
In this article we will discuss about:- 1. Meaning of Machine Hour Rate 2. Types of Machine Hour Rates 3. Computation 4. Other Points to be Borne in Mind While Computing Machine Hour Rate 5. Advantages 6. Disadvantages. Contents: Meaning of Machine Hour Rate Types of Machine Hour Rates Computation of Machine Hour Rate Other Points to be Borne in [...]
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, indirect labour and indirect expenses". [...]