Accounting for overheads

Concept and Meaning of overheads; Classification of overhead on the basis of function, behaviour, elements and control

Notes

Concept, Meaning & Classification of Overhead

Overhead is an expenditure of labor, materials or services which cannot be economically identified with a specific sale-able cost per unit.making clothes are examples of materials treated as overhead. The overhead cost plays an important role in determination of cost of production as well as the selling price.