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Indirect Overhead Cost and Cost of a Product

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In 50 words discuss: Why might the inclusion of indirect overhead costs in the calculation of the cost of a product provide us with a number that is very useful? For what purposes is such a calculation possibly useful?

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Your tutorial is 55 words and tells why indirect costs must be included in cost per unit and why this is useful.

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Indirect overhead costs are consumed in making the. Indirect resources include costs of acquiring direct materials ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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