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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.
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:
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.
Importance of overheads control
Overheads need to be controlled for the following reasons:
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