Variable Overheads
This query is : Resolved
23 December 2008
What r Variable Overheads ?
How r they treated in cost sheets?
How r they treated in cost sheets?
23 December 2008
Variable Overheads are those overheads which vary in the proportion of every increse or decrease in production.
In preparing a cost sheet Fixed Overheads allocated over the total production and then the same is added to arrive at the cost per unit while the variable overheads per unit remain the same irrespective of the volume of production and is directly added in the cost sheet to arrive at cost per unit.
In preparing a cost sheet Fixed Overheads allocated over the total production and then the same is added to arrive at the cost per unit while the variable overheads per unit remain the same irrespective of the volume of production and is directly added in the cost sheet to arrive at cost per unit.
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