Material and labour costs are easy to trace to products. when looking Literature review

Material and labour be argon easy to trace to products. when looking at overhead cost it becomes more difficult. Undertake a l - Literature review ExampleEksteen and Rosenberg (2002) have included other cost like communication, human resources, travelling, auditing, summation ownership etc. in the overhead costs. There is an important relationship existing between the influence and the indirect costs. Warsame (2006) utter that the direct and the indirect costs include the majority portion of the entire grammatical construction process. Some companies determine overhead costs as a percentage of the total direct costs. Carr (1988) stated that direct costs such as material, labour etc. are directly chargeable to the performed or implemented activity. Hegazi and Molsehi (1995) have estimated the overhead costs as a percentage of the total direct costs in 14 percent of their survey. Several researches have been made on the overhead costs and it has been divide into two parts. One is the work site overhead including the staff salary, the electricity charges, water supply charges, letting equipment and other is the administration cost (for example- office staff costs, insurance taxes, other fees etc.) (Shelton and Brugh, 2002 Carr, 1989 Assaf et al., 1999, 2001). Both these groups of overhead costs are required to be recovered by a company. There are two types of be systems for determining the cost of a product. One is the traditional be system and the other is the activity found costing system. Traditional costing system uses financial accounting information and activity based costing system uses management accounting information. While calculating the overhead cost