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What are Factory Overhead Costs?
Factory overhead costs are basically the indirect costs that are incurred by an organization. It is also called the manufacturing overhead and includes all costs of production with the exception of the cost of raw materials and the cost of direct labour. Examples of overhead costs include Loan Interest, administrative expenses, transportation expenses, etc. Refer to myhomeworkhelp.com to find out more about Factory Overhead costs from our Factory Overhead Costs Homework Help team.
How to control Factory overhead Cost?
After getting to know what factory overhead costs are, you can now focus on understanding how they are to be controlled. Our team at myhomeworkhelp.com has considered certain methods that can help in controlling overhead costs. By using energy efficient products, using inventories optimally, adopting better policies, etc. factory overhead costs can be curbed. Getting feedback from employees on how to control costs and to adopt the policies suggested by them is also a step towards boosting employee morale.
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