Factory overhead: Difference between revisions

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Factory overhead, also called manufacturing overhead or work overhead, 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

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 {{unreferenced|date=July 2009}}
-'''Factory overhead''', also called '''manufacturing overhead''' or '''work overhead''', 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 (business)|overhead]] also includes certain costs such as [[quality assurance]] costs, cleanup costs, and property [[insurance premium]]s.
+'''Factory overhead''', also called '''manufacturing overhead''' or '''work overhead''', 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
 [[Category:Management accounting]]