| # Project Definition Standard Overhead (tppdm0142m000) represent indirect costs ( Example electricity) that impact all manufacturing costs, except for direct labor and direct material that change depending on production volume. Overheads are those costs required to run a business, but which cannot be directly attributed to any specific business activity, product, or service. Overhead costs do not directly lead to the generation of profits Overhead costs overview Overheads are costs or expenses (such as for G&A costs, deprecation, energy, administration, insurance, rent, and utility charges). Overheads are costs: that relate to an operation or the company as a unit that do not become an integral part of a good or service (unlike raw material or direct labor) that cannot be applied or traced to any specific unit of output. Overhead application bases set-up Overhead application bases are used to make batch-wise overhead applications and to set up bases over which pre-determined overhead rates are calculated. To calculate and apply overheads Overheads are calculated for all the application bases, based on the postings in projects and the defined overhead application bases. The process of calculating and applying overhead can be scheduled to run periodically or can be manually started. |