Cost Element Interview Question:

What is Factory Overheads?

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Factory Overheads : are the overheads which are incurred from the stage of procurement of materials till the stage of finished goods. They include:

- Indirect Materials such as lubricants, cotton waste, consumable stores etc.
- Indirect Labour such as storekeeper, time keeper, works manager's salary etc.
- Indirect Expenses such as cost of factory lighting, carriage inward cost, depreciation on factory building, rent/insurance of building/machinery etc.
Submitted by: Administrator