About This Chapter
Overhead Costs - Chapter Summary
The video and text lessons in this chapter offer a fun look at a variety of concepts associated with overhead concepts. Examine them anytime 24/7 to get reacquainted with fixed costs, manufacturing overhead, variable cost and much more! Choose the lessons you need to review in any sequence that suits your current and desired understanding of this subject. Once you've completed this chapter, you will be able to:
- Share the definition of fixed costs and its importance to financial management
- Define and describe variable costs
- Discuss direct and indirect costs in project management
- Provide the definition of manufacturing overhead, and calculate manufacturing overhead per unit
- Calculate a predetermined overhead rate
- Explain how to allocate overhead in activity-based costing systems
There are a number of ways to fully grasp overhead costs using this chapter's resources. In addition to reviewing the lessons, use the self-assessment quizzes to assess your knowledge and determine which concepts you need to revisit. Also, use the Ask Our Experts feature in the Dashboard to clarify or learn more about specific topics. Get a comprehensive review of this chapter by taking the practice exam.
1. Fixed Costs: Definition, Formula & Examples
Understanding an organization's cost structure is essential for management to make appropriate investments. In this lesson, you'll learn the definition of fixed costs and why understanding fixed costs is an important part of financial management.
2. Variable Cost: Definition, Formula & Examples
In this lesson, we'll be looking at variable costs, which are those costs that change directly with production. After the lesson, you can test your knowledge with a short quiz.
3. Direct and Indirect Costs in Project Management
Managing the costs of a project is a key element in effective project management, but not all costs are the same. In this lesson, you'll learn about direct and indirect costs in project management.
4. Manufacturing Overhead: Definition, Formula & Examples
In this lesson, we'll define manufacturing overhead, use the given formula to determine manufacturing overhead per unit and cite examples of the specific costs that are used to determine manufacturing overhead.
5. Predetermined Overhead Rate: Formula & Example
Overhead costs can be very tricky to estimate but it is necessary to do so when job planning. There are a few ways to accomplish this and this lesson will discuss some of the ways to effectively compute a predetermined overhead rate.
6. Allocating Overhead in Activity-Based Costing Systems
In this lesson, you'll learn how you can calculate your overhead by figuring out the cost of each activity you do to make a product. You'll also read about dividing your costs into batch-related costs and per-unit costs.
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- Data Governance
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- Financial Statement Special Issues
- Basics of Corporate Finance
- Capital Management Overview
- Corporate Restructuring
- International Finance Practices
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- Risk Management for Business
- Investment Decisions
- Accountant Professional Ethics
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