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Allocation and Apportionment of Overheads

  • Jill Collis
  • Roger Hussey
Part of the Macmillan Business Masters book series (PMB)

Abstract

At some point an organisation may wish to know the total cost of a particular product or service. The records kept of direct costs, such as materials and labour, enable these costs to be identified with specific units. However, an organisation also incurs indirect expenses, such as rent and rates, light and heat, insurance and salaries of supervisors. Some method must be found to charge a fair share of these indirect expenses, known as overheads, to individual cost units to find the total cost of each unit.

Keywords

Cost Unit Management Account Production Department Overhead Cost Elimination Method 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Jill Collis and Roger Hussey 1999

Authors and Affiliations

  • Jill Collis
  • Roger Hussey

There are no affiliations available

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