tailieunhanh - Ebook Cost Accounting-I: Part 2 - Gopika Juneja

Ebook Cost Accounting-I: Part 2 presents the following content: Absorption of Overheads; Job and Batch Costing; Contract Costing; Process Costing and its Applications; Normal Wastage, Abnormal Loss and Abnormal Gain; .Please refer to the documentation for more details. | Cost Accounting I Sukhpreet Kaur Lovely Professional University Notes Unit 8 Overheads CONTENTS Objectives Introduction Meaning and Definition of Overhead Classification of Overheads Codification of Overheads Overhead Accounting Summary Keywords Review Questions Further Readings Objectives After studying this unit you will be able to zz Understand the meaning and definition of overheads zz Describe the classification of overheads zz Identify the codification of overheads zz Understand the overhead accounting. Introduction Overhead has been defined by the Institute of Cost and Work Accountants London as the aggregate of indirect material cost indirect wages and indirect expenses . By indirect it means one which cannot be allocated but which can be apportioned to or absorbed by cost centre or cost unit . Overheads are those indirect costs which cannot be directly related to any product job or process because they cannot be directly attached to production activities. The total cost is divided into prime Cost Factory Cost and Administrative Cost. Overhead comprises of indirect material indirect labour and indirect expenses. Blocker has defined the overhead costs as Operating of a business enterprise which cannot be traced directly to a particular unit of output . Overheads are the indirect costs which cannot be directly allocated to any particular job and production activity or process as they are not capable of being specifically identified to any particular activity. Caution A major part of the total cost is overheads. 156 LOVELY PROFESSIONAL UNIVERSITY Unit 8 Overheads Meaning and Definition of Overhead Notes Meaning of overhead The term has overhead has a wider meaning than the term indirect expenses. Overhead includes the cost of indirect material indirect labour and indirect expense. This is the aggregate sum of indirect material indirect labour and indirect expense. Overhead Indirect material indirect labour indirect expenses