Purchase department employees comes under production overhead or non-production overhead?
Please give any tip also through which it would be easy to categorise between production overhead and non-production overhead.
FIA Forums
Labor
5y ago#1I would say so. Purchasing raw materials is an essential part of production, and that 8s my test. Similarly, factory cleaning, maintenance, insurance of machinery, production supervisors etc are also closely related to production but are not direct costs.
Thank you sir.
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