Question

What Are Overheads? How Are They Classified?

Answer 1

The indirect costs or fixed expenses of operating a business (that is, the costs not directly related to the manufacture of a product or delivery of a service) that range from rent to administrative costs to marketing costs. Overhead refers to all non-labor expenses required to operate your business.

overhead classified

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.