Skip to main content

Factory Over Head Cost:


                Managerial Accountant uses the Factory Over Head Cost to complete their productions and improves their product quality and efficiency. The FOH actually means the costs which are not directly related to the production or manufacturing activity but that cost we need to complete the product and make it more efficient or effective in quality to use. There are three different portions of the Factory Overhead Costs. These portions are Material Overhead, Labor Overhead, and Utility Overheads. These Material and Labor overhead costs are indirect and not directly involved in the production. The material that indirectly supports the production is known as material overhead, the labor supports which indirectly support the complete activity to improve the time efficiency is known as labor overhead and the utilities like insurance, rent, depreciations and many more expenses like it are known as factory overhead costs.


The Formula normally used for Factory Overhead Cost is as follows:



Comments

Post a Comment

Popular posts from this blog

ACCOUNTING CYCLE

Accounting Cycle:                 Accounting is the field of study which tells us about how to collect the economic figures, evaluate and analyze them and  record them  in a very respectable and professional way to present to the business stakeholders and helps them to collect the required information from the pool of business transactions. That is an art and we also knows it with the name of book keeping. As I write in the above paragraph accounting of business financial transactions is an art of collection, evaluation, analyzing, recording and presenting to the business management and stakeholders. That complete process is based on some steps of activates which are commonly known as accounting cycle. That Accounting Cycle is consist of 7 different steps  which are Source Data, Journal, Ledger, Trial Balance, Adjustment, Closing Accountings and Stock Valuation and Preparation of Fina...
4 comments
Read more

ELEMENTS OF ACCOUNTS:

ELEMENTS OF ACCOUNTS:                 Accounting is the art of collecting, separating, analyzing and recording the financial transactions of the business in a certain economic period. There are two different methods or system to record the accounting transactions, one is Double Entry system and the other one is single entry system. Double Entry System is used by corporate accounting business and MNCs . Single Entry System is use by Nonprofit or Charitable Organizations.                 There are three elements of the accounting transactions and every business financial transaction must be fall in one of them. These Elements are Personal Accounts,  Real Accounts and Nominal Accounts. The Further explanation regarding these accounts are as follows: Personal Accounts:        ...
7 comments
Read more

Financial & Non -Financial Benefits from the Membership of Chamber of Commerce & Industry.

We know every business firm , commerce department, trading venture, and industrial unit always needs, Visibility to stand out and get noticed as an active participant in the society. The eventually prefer to avail growth opportunities through the provision of quality training and educational activities and through different events. They require Credibility through their production activities and services provision, which helps them in building a reputation. The holder of this membership can enjoy and avail members of member discounts to improve their purchasing power and all other offers and benefits as offered from time to time. That also helps them to build their communityNetwork and to make them socially powerful and these professional relationship helping them to get a plate forum that advocates on their behalf. This all means all industrialist, businessmen, and corporate identity holder (Only Owners of the Corporates or in some cases their partners and directors)   must ...
3 comments
Read more