What are overheads? How are they classified?

What are overheads? How are they classified?


Overheads are the aggregate of Indirect Material cost, Indirect Labour and Indirect Expenses. Thus, sum of all indirect costs are overheads. They are of three types:

- Factory Overheads

- Office and Administration Overheads

- Selling and Distribution Overheads
Define Factory Overheads, Office and Admin overheads, Selling and Distribution Overheads
Factory Overheads : are the overheads which are incurred from the stage... Office and Admin overheads : are the overheads incurred for the overall administrative work...Selling and Distribution Overheads : are the overheads incurred from the stage of final manufacturing...
Define Gross Profit
Gross Profit is a company’s revenue minus its cost of goods sold. It is also known as gross margin …
Define Net Profit
Net Profit/ Operating Profit Net profit, also known as operating profit is actual earnings of the company…
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