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ABSORPTION OF OVERHEADS
Made By:-
Rohit Jain
BFIA-III
Overheads
• Overheads are the indirect costs which cannot be
easily allocated to any specific Job, Process because
they are not capable of being identified with any
specific Job or Process. Overheads include cost of
indirect material, indirect labour, indirect expenses
which cannot be conveniently charged to any job.
Allocation and Apportionment of Overhead
Two steps: