Question

How do you classify the overhead in operating costing?

Answer 1

Overhead is the cost of material, labour and expenses, which cannot be easily identified with any, job or process. ... Therefore, overhead is the aggregate of indirect material cost, indirect wages and costs of indirect service. Small amounts can be traced into a specific units of production included in the overhead.

Answer 2

Answer:

Explanation:The overheads can be classified into in the following ways on the basis of function wise classification. Production Overhead. Administration Overhead. Selling Overhead. Distribution Overhead. Research and Development Overhead. Fixed Overhead. Variable Overhead. Semi-Variable Overhead.