Overhead Costs In Accounting Definition Example
What are the Overhead Costs? Overhead Cost refers to the cost of indirect material, indirect labor, and other operating expenses, which are associated with the typical day-to-day running of the business but cannot be conveniently charged directly to any specific product or service, or cost center. They are Indirect and need to be shared among the cost units as precisely as possible. In other words, it is the cost incurred on labor, material, or services that cannot be economically identified with a specific saleable cost of goods or services per unit of the business....