OVERHEAD COSTS - Literature review Example

Only on StudentShare

Extract of sample
OVERHEAD COSTS

The cost of direct labor, direct material and manufacturing overhead must allocate to each and every unit produced. This is done to value the inventory and the costs of goods manufactured, and then report them according to the general accounting principles. Manufacturing overhead may include costs like electricity which is used to operate the factory equipment, depreciation of factory equipment, salary of indirect labor and all the cost related to production except direct labor and direct material. Nonmanufacturing overhead includes activities related to the selling and administration departments. These costs are not included in the cost of goods sold as they are taken directly in the income statement as expense. Nonmanufacturing overhead includes cost such as freight charges, property tax, maintenance of equipment and salary for employees of selling and administrative department etc. Although the nonmanufacturing overhead is not included in the cost of goods sold but they are actually the part of the combined cost incurred in the manufacturing of a product. LITERATURE REVIEW Don R. Hansen, M.M.M.L.G. (2009) Cost Management: Accounting & Control, Cengage Learning. Don Hansen defines overhead cost as all the production costs other than direct labor and direct material that are incurred during production process. ...Show more

Summary

OVERHEAD COSTS NAME INSTRUCTOR DATE In the manufacturing world, the demands of the customers are increasing day by day. The company has to meet the demands of the customers by making profits out of it. To make profits, firm has to allocate the cost to each and every product effectively…
Author : ybeier
OVERHEAD COSTS essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the literature review on your topic
"OVERHEAD COSTS"
with a personal 20% discount.
Grab the best paper

Related Essays

Delivery of Effective E-Government Systems: The Case of Oman
ogy revolution and the information era have influenced virtually all areas of human life including governance. Governments from around the world have sought to establish e-government systems for various reasons such as efficiency and accountability. Whereas the industrialized nations have achieved much in implementing e-government systems, countries such as Omani have faced challenges despite making significant efforts.
10 pages (2500 words) Literature review
Literature Review on Personalized Web Improvement
Users need personalized web portals and services because they allow users to get the information they need quickly. Many users need to constantly pop online to check only a few things: A favorite news site, an e-mail account, Twitter and Facebook, for example. Opening four tabs in a browser to do that is absurd.
6 pages (1500 words) Literature review
In and out of cloud computing
The cloud computing boom over the recent years has led to many new technologies and innovations. Though many have heard about it, very few understand it, its benefits and its risks. This literature review will offer a clear clarification to these issues by giving a more comprehensive definition, and the benefits and risks it can bring to a business.
8 pages (2000 words) Literature review
Research Question: How Can RyanAir maintain its dominance in the European low-cost airline market European low-cost airline ma
Introduction The nature of competitiveness of the global market place has been ha been changed significantly in the post-modern age of business environment. The intensity of the competiveness are increasing continuously and the in order to cope with the fierce competition, the existing firms are trying to gain a sustainable competitive advantage to secure a reliable amount of the revenue.
12 pages (3000 words) Literature review
A framework for knowledge based educational decision support system
This gives an insight of the relations,patterns and the principles behind certain decisions taken in a practical manner through proper understanding.This system can also be applied in Educational Decision Support System for an easy decision taking procedure in the educational institute and normalizing the procedure for management of institutional admissions.
5 pages (1250 words) Literature review
Material and labour costs are easy to trace to products. when looking at overhead cost it becomes more difficult. Undertake a l
Carr (1989) has stated that overhead costs are those costs which will be incurred by a company even if an activity is not being performed. Direct costs such as material and labour costs are incurred only when an activity is being performed. Chan and Pasquire (2002) have stated that the overhead costs are the administering costs of the project and includes site staff, site based services etc.
6 pages (1500 words) Literature review
To what extent does strategic management accounting contribute to global competitiveness Illustrate your answer through an anal
The traditional management accounting is considered to be inadequate with its focus only on the manufacturing and ignores the effect of various other activities. The accounting reports provide incomplete sets of measures. The traditional reporting systems implemented by traditional management accountants include standard cost variance analysis or the budgetary control techniques, which do not focus completely on the processes.
6 pages (1500 words) Literature review
Having undertaken the MEGA business simulation in a team from early October 2013 up to the end of December 2013, you are now required to write an individual report (NOT AN ESSAY) based on reflective analysis
During the course of the project, we came across some critical incidents that served as a source of learning for the team. These critical incidents, related to team formation, strategy concepts and reflective techniques,
8 pages (2000 words) Literature review
Independent evaluation of agile methods
However their success has been circumstantial and studies in this subject has been unsatisfactory. Grounded on the current literature on this subject, this paper recognizes significant prospective success factors of agile methods and how such a success can be
6 pages (1500 words) Literature review
E-commerce
Therefore, by connecting through computers and mobile phones, consumers can go online to sellers’ websites and search for goods that they require; pay for them through approved online payment systems and consequently, receive the goods
9 pages (2250 words) Literature review
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT