Overheads

Charging overheads to cost unit is known as

• OH Absorption

• OH allocation

• Appointment

• Apportionment

Basis of apportionment of internal transport dept

• No of orders placed

• Weight or cost of materials

• No of employees

• No of labour hours

Basis of apportionment of cost of purchase department

• No of employees

• No of orders placed

• Cost of materials

• Labour hours

Operating cost of a business which cannot be traced directly to a particular unit or output

• Cost

• Sunk cost

• Overheads

• Variable cost

Indirect expenses incurred on searching new products and new methods

• Distribution OH

• R&D overhead

• Factory OH

• Selling OH

Which is an example of semi variable overhead

• Overtime cost

• Electricity charges

• Legal expenses

• Audit fees

Process of allotting number or symbol to overheads

• Collection

• Departmentisation

• Codification

• Allocation

Process of charging full amount of the overhead to particular department

• Appointment

• Allocation

• Apportionment

• Collection

Power expenses are apportioned on the basis of

• Rate per hour

• Horse power

• Kilogram

• Kilowatt

When a single rate of overhead is computed for factory as a whole

• Actual oh rate

• Predetermined rate

• Blanket rate

• Seperate rate