![]() Manufacturing overhead is made up of the indirect costs a company undertakes in its production process. What is the definition of manufacturing overhead?ĭo a quick Google search of manufacturing overhead and you’ll find an array of definitions and ideas of what it means. That’s why we’ve created this guide that will help you understand all you need to know about manufacturing overhead and how to reduce it. But manufacturing businesses can practice wise habits when it comes to managing their production costs. Like any type of overhead expense, manufacturing overhead is unavoidable. The key word here is "indirect costs." Manufacturing overhead expenses do not include production costs like direct labor costs or raw materials. Each one deals with the indirect costs associated with a company's production process. Manufacturers and factories refer to some of this spending as “manufacturing overhead.” Certain groups also call it “factory overhead,” “factory burden,” or “production overhead,” but they all mean the same thing. The old adage that you have to spend money to make money is a cliché, but that doesn’t make it any less true. This principle rings true for businesses as much as it does for everyday life. ![]() Anything worth having will cost you something. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |