overheads

Articial Building Intelligence with iTWO fm

Overheads are simultaneously caused by multiple products or cost centers. For example. the costs of the head of department are incurred jointly for all products of the department concerned. Overhead costs are allocated to the individual products via distribution keys, so-called cost drivers or reference values. The counterpart to overhead costs are the direct costs. In public administrations, as in other service enterprises, overhead costs typically dominate over direct costs.

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