Question

Ta
Which of the following is
correct way of classifying
costs based on behavior?
Material , Labour & Expenses
O Direct & Indirect
O Production, Administration, Selling,
Distribution and Research &
Development
Fixed, Variable & Semi- Variable
Submit
TIMER​

Answer 1

Answer:

Everything you need to know about classification of overheads. Classification of overheads refers to the process of grouping costs according to their common characteristics.

The overhead costs are incurred not for any particular job, work-order, process or unit but for the business as a whole and include all costs other than direct material costs, direct wages and direct expenses.

Overhead costs are also denoted by ‘supplementary costs’ ‘non-productive costs’, ‘indirect costs’, ‘on cost’, ‘burden’ etc. Of all the terms, ‘overhead’ is the most common and the Institute of Cost and Management Accountants, London, does not recommend the use of the terms ‘on cost’ and ‘burden’.