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Salaries as overhead

Forums › ACCA Forums › ACCA PM Performance Management Forums › Salaries as overhead

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Chris.
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  • June 13, 2019 at 3:02 pm #520393
    khalidpk86
    Member
    • Topics: 3
    • Replies: 2
    • ☆

    If Salaries are already charged to Product costing as in direct Overhead then why these are again charged after operating profit?

    June 14, 2019 at 9:22 am #520457
    Chris
    Member
    • Topics: 7
    • Replies: 591
    • ☆☆☆☆

    Direct overheads would only be the staff that actually make the products. Salaries for staff such as management, HR and finance departments would not be charged as direct costs and would be overheads instead.

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