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What are overheads?

In: Business Accounting and Bookkeeping [Edit categories]

Answer:

overheads are three indirect elements of cost. The three elements being-i ndirect material, indirect labour and indirect expenses. these indirect elements of cost have no bearing whatsoev
er with the level of activity or volume of production. Examples of these indirect elements are- in making shirts. buttons and thread will be indirect material, rent of the factory will be indirect expenses and salary of the storekeeper will be indirect labour these three would be collectively called overheads.

First answer by ID1976017565. Last edit by ID1976017565. Question popularity: 1 [recommend question].

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