Overheads are indirect Costs. Indirect Cost cannot be traced to any unit. These costs are incurred for a number of units and so cannot be identified with a cost unit. Indirect costs are those which cannot be allocated to any particular cost unit but is generally apportioned to or absorbed by cost units on a suitable basis. Overhead is also [...]
Everything you need to know about classification of overheads. Classification of overheads refers to the process of grouping costs according to their common characteristics. The overhead costs are incurred not for any particular job, work-order, process or unit but for the business as a whole and include all costs other than direct material costs, direct wages and direct expenses. Overhead [...]