Talking Cents

Our small business accountants in Melbourne will explain what manufacturing overheads are

Manufacturing overheads comes with any business you try to run, they are fixed expenses that you rely on for all operating costs. Our small business accountants in Melbourne will explain what overhead costs are.

What is a manufacturing overhead? It is an accounting term that refers to all ongoing business expenses not including or related to direct labour, direct materials or third party expenses that are billed directly to customers. A company must pay overhead on an ongoing basis, regardless of whether the company is doing a high or low volume of business.

Overhead charges apply to a range of operational categories and should be organised in a way to ensure each sector doesn’t get mixed up with their costs. If you are ever in need of small business accounting services in Melbourne, regarding your overhead costs, we’ll always be willing to help.

Feel free to contact our small business accountants in Melbourne for all your accounting needs.