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1 year ago

Actual overhead costs may not be proportional to the actual amount of the allocation base used because ______.

1 answer:

3 0

Actual overhead costs may not be proportional to the actual amount of the allocation base used because of 2 Reasons aforementioned.

Many of the real overhead expenses are set.
Spending on overhead may not be under control.

In the world of business, a continuing cost of running a company is referred to as overhead or overhead charge. Unlike operating expenditures like as raw material and labour, overheads cannot easily be attributed to or associated with any one revenue unit.

<h3><u>Few of instances of overhead expenses.</u></h3>

Rent
Insurance.
Office equipment.
Travel.
Advertisement costs.
Legal and accounting costs.
Wages and salaries.
Utility charges

To Learn more about Overhead Cost, Click the links.

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