Sir, I wanted to ask, is the overhead(fixed&variable) are reduced
before gross profit or after gross profit ?
In an illustration, 2 overhead re given along with other costs, production ovehead and administration and distribution overheads
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Performance management.
Also, is the production overhead is always semi-variable cost?
5y ago#2I do not know which illustration 2 you are referring to.
Production overheads are part of the cost of goods sold and are part of the calculation of the gross profit.
Non-production overheads appear after the gross profit.
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