Business

Charge to Inventories: When closer control of manufacturing supplies is required or when more than one department uses certain manufacturing…

Indirect Materials and Factory Supplies. Distinguishing incorrectly between direct and indirect materials (the latter being part of overhead) has the…

Direct departmental overhead costs: Inasmuch as overhead is allocated to all products, a lax or incorrect classification results in direct…

The Reason why Service Department Costs are Often Allocated to Producing Departments: The selection and designation of service department has…

What are producing department and service department? Division of the factory into separate, interrelated, and independently governed units is important…

Departmentalization of factory overhead denotes dividing the plant into various segments called “departments” or “cost centers” to which expenses are…

The concept of DEPARTMENTALIZATION: Departmentalization of factory overhead means dividing the plant into segments called “departments” or “cost centers” to…

Budgetary Control and Responsibility Accounting:In some previous blog posts we have discussed the establishment and use of one factory wide…

Overhead rates may turn out to be incorrect or out dated because of misjudgments regarding estimated overhead or anticipated activity.…

Disposition of Over or Underapplied Overhead: Because of its importance, the analysis of the over or underapplied overhead figure is…