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Allocated overhead charge

Hhasanali9512y ago
Q Proteus The company has some overhead allocated charges,when an MBO takes place why do we have to omit this overhead ? Wont the MBO be paying an amount for it? Thanks in advance
John MoffatJohn MoffatTutor12y ago#1
Allocated overheads just means that for profit purposes some of the existing fixed overheads have been charged to this particular project or company. It does not mean that the amount allocated results in an actual payment by that project/company.
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