It takes more than raw materials and shop workers to manufacture products. Factories need power, supplies and employees whose functions are essential to the operation even though they aren't part of ...

If you buy $10,000 worth of raw materials to make 1,000 items, it's easy to see you spent $10 on raw materials per widget. Allocating how much management salaries, utilities or rent you spent on each ...

There are many costs associated with running a business, but all of those costs don’t fall into the same bucket. One type is overhead costs, which are expenses not tied directly to the production of a ...

There are two main categories of expenses that a business can incur: overhead and operating expenses. Operating expenses are those that a business incurs as a result of its normal operations. These ...

Overhead allocation is a source of great disagreement in our industry. Should the allocation be based on job price? On job cost? Per project? Or per field man-hour. We understand the pros and cons of ...