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Overhead Expense

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Although other types exist as discussed below, overhead expenses can be easily explained in terms of indirect manufacturing costs-that is, costs not associated with direct materials or direct labor. Overhead expenses—also called indirect manufacturing costs and factory overhead—encompass three general kinds of costs: those for indirect materials, indirect labor, and all other miscellaneous production expenses such as taxes, insurance, depreciation, supplies, utilities, and repairs.

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Copyright © 2011 Advameg, Inc.