Factory overhead: Difference between revisions
Content deleted Content added
No edit summary |
No edit summary |
||
| Line 1: | Line 1: | ||
'''Factory overhead''', also called '''manufacturing overhead''' or '''factory burden''', is the total cost involved in operating all production facilities of a manufacturing business. It generally applies to indirect |
'''Factory overhead''', also called '''manufacturing overhead''' or '''factory burden''', is the total cost involved in operating all production facilities of a manufacturing business. It generally applies to indirect labor and indirect cost, it also includes all costs involved in manufacturing with the exception of the cost of raw materials and [[direct labor]]. Factory overhead also includes certain costs such as quality assurance costs, cleanup costs, and property insurance premiums. |
||
[[Category:Management accounting]] |
[[Category:Management accounting]] |
||
Revision as of 09:10, 8 September 2008
Factory overhead, also called manufacturing overhead or factory burden, is the total cost involved in operating all production facilities of a manufacturing business. It generally applies to indirect labor and indirect cost, it also includes all costs involved in manufacturing with the exception of the cost of raw materials and direct labor. Factory overhead also includes certain costs such as quality assurance costs, cleanup costs, and property insurance premiums.