Production overheads

Cost and management accounting.

1.

Production overheads include indirect costs of production such as depreciation of production equipment and fixed production facility costs.

Production overheads are normally defined to exclude administration, marketing and finance overheads (period costs).

2.

The term 'production overhead' is sometimes defined more broadly, to include fixed administrative and other costs as well.

See also

• Depreciation
• Direct costs
• Direct expense
• Direct production cost
• Indirect costs
• Management accounting
• Overheads
• Period costs