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What are overhead expenses?

Every business incurs a cost in order to create a product or service that others can avail of. These costs can be categorized into direct and indirect costs. Direct costs include the labour and resources involved in the direct manufacturing or production process, while indirect costs include overhead expenses like equipment, supplies, legal fees and taxes, employee salaries, rent and other such utilities. Before going through our overheads control homework help, ensure that you havea basic understanding of the topic so that you can make the most of it.

Classification of overheads

Ouroverheads control assignment help will give you a clear classification of various overheads. Understanding and remembering these classifications will be easier once you go through it carefully.

  • Administrative overheads

These overheads include planning, utilitarian and other miscellaneous functions of a business. They are classified under overhead costs because they do not bring in a profit, and are used for the benefit of employees. You can learn about these overheads in detail fromour excellent overheads control homework help.

Administrative overheads include:

  1. Employee salaries which must be paid irrespective of a company’s sales or profits.
  2. Essential supplies like fax and copy machines, refrigerators, air conditioning, etc.
  3. Other overheads like fees for company lawyers, cars for employees, travelling expenditure when an employee goes on a business trip, meals, and others.


  • Manufacturing overheads

In your overheads control homework help you will notice very few differences in the nature of administrative overheadsand manufacturing overheads. For example, employee salaries are still considered an overhead cost, but the natures of their jobs are different.

  • The equipment and machinery used to manufacture a product are consistently updated, and old equipments lose value as they become obsolete. Thus a lot of equipment goes to waste when the company upgrades and they do not profit from the old machines.
  • Tax paid to the government in order to run a business and factory.
  • Companies spend a lot of money on high rent unless their factory spaces are business owned.

Importance of overheads control

Overheads need to be controlled for the following reasons:

  • To ensure that the company does not incur a loss through overheads
  • To facilitate proper allocation of funds and resources
  • To encourage stability between employees and their work environment

So if you need any help in this department, contact us for the best overheads control assignment help available.

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