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Profit and loss with overhead expenses - class-XI
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An example of a production overhead would be:
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A
supervisory costs
💡 Explanation:
An example of a production overhead would be supervisory costs.
Materials and labour costs would be directly attributable to the product and would be classed as direct costs. Rent is a non production overhead but salaries of supervisors are related to production and are an overhead as they do not vary directly with output.