OVERHEADS
This book is brought up in accordance with the subject of Overheads. In this book, the subject matter is expressed in clear way so that each and every reader understand the subject easily. In the book, I clearly mentioned the Introduction to Overheads, Overhead Accounting, Classification of overheads, Apportionment of overheads, Methods of overheads, Absorption of overheads, Administrative overheads, Selling and Distribution overheads. Hence, this book will help the readers to understand material management. I believe that with the help of this book, every reader gets the scope of knowledge which helps them in getting the understanding of overheads in Cost Accounting. I wish that this book will win the heart of every user.
The main features of the book are simple understanding and key concepts.
This book is very helpful to readers to learn about overheads of Cost Accounting with suitable examples.
This book is useful to everyone in Cost accounting field like students, Accounts executives, Analysts etc… .
It is hoped that this will facilitate a better understanding of the subject matter.
I welcome any valuable suggestions regarding this book in a better and improved way. Suggestions will be incorporated in the subsequent editions.
All the best …
Chandra Sekhar
Sri Venkateswara University
chandrakindle55@gmail.com
CONTENTS :-
I. INTRODUCTION
II. OVERHEAD ACCOUNTING
A. Collection of overhead
B. Classification of Overhead
(i) Classification according to Elements
(a) Indirect material
(b) Indirect labour
(c) Indirect expense
(ii) Classification according to Functional
(a) Manufacturing overhead
(b) Administrative overhead
(c) Selling and distribution overhead
(d) Research and development overhead
(iii) Classification according to Behaviour
(a) Fixed overhead
(b) Variable overhead
(c) Semi variable overhead
C. Codification of Overhead
D. Allocation and apportionment overhead
1. Departmentalization
2. Allocation
3. Apportionment
4. Reapportionment of Overheads
E. absorption of Overhead methods
1. Direct Material Cost
2. Direct Labour Cost Method
3. Prime Cost Method
4. Production Unit Method
5. Direct Labour Hour Method
6. Machine Hour Rate
7. Selling Price Method
III. UNDER / OVER ABSORPTION OF OVERHEAD
IV. ADMINISTRATION OVERHEADS
V. SELLING AND DISTRIBUTION OVERHEADS
VI. ACCOUNTING TREATMENT OF EXPENSES
1. Advertising Cost
2. Installation Cost of Plant and Machinery
3. Dismantling Cost of Plant and Machinery
4. Cost of Small Tools
5. Inspection Charges
6. Carriage on Material
7. Setup Cost
8. Royalties and Patent Fee
9. Market Research
10. Repairs and Maintenance Cost
11. Lighting, Heating, and Air-conditioning Expenses
12. Compensatory Payment to Workers
13. Director’s Fee and Salaries
14. Design and Drawing Office Cost
15. Training Cost
16. Canteen Expense
17. Medical Expense
18. Bad Debt
VII. PROBLEMS AND SOLUTIONS
Problem 1 and Solution
Problem 2 and Solution
Problem 3 and Solution
Problem 4 and Solution
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