Factory Overheads OR Site Overheads

Factory Overheads are costs that are connected directly to the production of goods and services but they are not identified as labor or materials. Examples include Depreciation of equipment at a production site, rent for a retail site, utilities for locations other than corporate offices.

The reporting of these costs will vary by company - some or all of these costs can be:

Admin Overheads are not directly connected to the production of goods and services, they are reported in Selling, General & Administrative (SG&A)

Factory Overheads might be called Site Overheads in non-manufacturing industries. 

See also Direct Cost, Semi-variable Costs.


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