Overhead refers to indirect costs that support business operations but cannot be directly traced to a specific product or service. Examples include factory rent, administration salaries, utilities, and office expenses. Proper treatment of overhead is important because it affects pricing, profitability analysis, and cost control.
Owner’s Equity
Owner’s equity is the residual interest of the owner or shareholders in the business after deducting liabilities from assets. It includes capital introduced, retained...
Overapplied Overhead
Overapplied overhead occurs when the amount of overhead allocated to production is greater than the actual overhead incurred during the period. This means products...
Outstanding Shares
Outstanding shares are the shares of a company that have been issued and are currently held by shareholders, excluding treasury shares held by the...
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