Administration overhead

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student
780 Points Posted on 02 March 2021

Please suggest example of administration overhead related to production. 

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On 02 March 2021 at 15:41 Report
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This discussion clarifies what constitutes administration overhead in a production context. It distinguishes between direct production costs and administrative expenses, correcting an initial misunderstanding about direct materials. The conversation highlights that direct materials, direct labour, and direct expenses are components of prime cost, not administrative overhead.

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3134 Points Posted on 02 March 2021

Wages paid to factory staff, direct material purchased are some examples of administrative overheads related to production.

 

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On 02 March 2021 at 15:49
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student
780 Points Posted on 02 March 2021

"Direct materials purchased" is not categorised under administration overhead . 

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On 02 March 2021 at 15:57
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3134 Points Posted on 02 March 2021

Sorry for the error

Can you please tell me the category 'Direct Materials Purchased' falls under?

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On 02 March 2021 at 16:00
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student
780 Points Posted on 02 March 2021

Direct materials, direct labour, direct expenses are part of prime cost. 

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On 02 March 2021 at 16:04

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