Overheads — Allocation and Apportionment

  • Roger Hussey
Part of the Macmillan Professional Masters book series (PRMA)


At some point, a company may wish to know the total cost of a particular product or service. The records kept of direct costs, such as materials and labour, enable these costs to be identified with specific units. However, a company also incurs indirect expenses, such as rent and rates, light and heat, insurance and salaries of supervisors. Some method must be found to charge a fair share of these indirect expenses, known as overheads, to individual cost units to find the total cost of each unit.


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Copyright information

© Roger Hussey 1989

Authors and Affiliations

  • Roger Hussey
    • 1
  1. 1.Bristol Business SchoolUK

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