Secondary distribution of Overhead The production departments do not produce any goods and services without getting any service from the service departments. Hence, there is logic that the
Cost is defined as the amount of expenditure (actual or notional) incurred on or attributable to a given thing or to ascertain the cost of a given thing.
History of Cost Accounting Every business has to face stiff competition under uncertainty conditions or situations. Moreover, risks involved in running of a business unit are also increased
What is Cost Control? Cost control is a tool of management executives to regulate the working of the manufacturing concern. Under the globalize economy, mere planning is not
Primary Distribution of Overhead Primary Distribution is the allocation or appointment of different items of overhead to both production and service departments on suitable basis. There is no
What is allocation of Overhead? The overhead, which can be easily identified with a particular department that is charged only to the specified department, is called allocation. There
Collection of Overhead or Factory Overhead The collection of overhead is the process of recording each item of cost in the book of accounts maintained for the purpose
Methods of Segregation of Semi-Variable overhead The semi-variable overhead gives a lot of problem to management in cost analysis. The reason is that the management is not able
Overheads can be classified based on function, behavior, elements and control. They are briefly explained below. Function wise classification of overheads The overheads can be classified into in