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OVERHEAD ANALYSIS

K.MATHANKUMAR,

Assistant Professor,

PG and Research Department of Commerce,

C.P.A College,

Bodinayakanur.

K.MATHANKUMAR, Assistant Professor, PG and Research Department of Commerce, C.P.A College, Bodinayakanur.

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Meaning of Overhead

Definition of Overhead

Any Expenditure over and above the prime cost is known as overhead. All the indirect expenses are included in overhead.

“ Total Cost of indirect materials, wages and expenses”

- ICMA

K.MATHANKUMAR, Assistant Professor, PG and Research Department of Commerce, C.P.A College, Bodinayakanur.

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1

Collection of overhead

4

Re-apportionment of service department costs to production department.

2

Classification of overhead

5

Absorption of overhead by production units

3

Allocation and apportionment of overhead

Step involved in Overhead accounting

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THANKING YOU

K.MATHANKUMAR, Assistant Professor, PG and Research Department of Commerce, C.P.A College, Bodinayakanur.