Overhead Meaning
Every form of proudction involves two type of costs i.e direct cost and indirect cost.Direct costs can conveniently be indentified with particular unit of production,i.e direct material, direct labour,direct expenses. Indirect cost cannot be traced to any unit of production. The word indirect indicates that the cost accountant is either unable or unwilling to allocate cost to a particular cost unit,but it is generally apportioned to or absorbed by cost unit or cost centres on suitable basis.
ICMA defines overhead as 'total cost of indirect material,indirect wages and indirect expenses'
Blocker and Weltmer define "Overhead costs are operating costs of a business enterprise, which cannot be traced directly to a particular unit of output
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