IamDozzy
Active member
Factory overhead costs also called manufacturing overhead is the expenses gotten during the manufacturing of a product. It doesn't take into account cost of employing people and cost of buying a material for production to take place. These factory overhead costs are usually factored in when determining the price at which a product would be sold for in the market. Some examples of factory overhead costs include the following;
• Equipment setup costs
• Equipment maintenance costs
• Factory rents
• Factory utility costs
• Factory insurance in the case of accident
These costs are much and as potential business owner or a practicing business owner, it is important for one to know these costs so as to determine how price for goods would be fixed.
• Equipment setup costs
• Equipment maintenance costs
• Factory rents
• Factory utility costs
• Factory insurance in the case of accident
These costs are much and as potential business owner or a practicing business owner, it is important for one to know these costs so as to determine how price for goods would be fixed.