fixed and overhead cost

[Former Member]

hi,

1 may i know if fixed cost and overhead cost are the same? why?

2 all fixed cost and overhead cost are actual cost only? why?

thanks

[Former Member · Accepted solution]

Hi, 1) Fixed Cost shall be fixed in nature irrespecitve of volume of production. For example, Salary paid to Accounting staff. This expense remain constant whether the Production is less or more. Regarding. overhead costs are those costs which are indirect in nature and it is not directly related to Production. For Example, we can take the same Salary paid to Accounting Staff which is of no relevance to the production. As you said, in most of the cases, the overheads shall be in fixed in nature. 2) We can have both Actual and Plan expenditure for overheads. Fixed cost only denotes the nature of the expenditure. Trust this helps much! Cheers!

[Former Member]

hello

be specific about your question.

Fixed are fixed with reference to time. variable are fixed with reference to qty/hrs etc

where you need this ???

Regards

Dinabandhu

[Former Member]

hi,

i need to know if fixed cost same as overhead cost and also if they only actual?

thanks

[iklovski]

Hi,

Any cost could be planned whether it's fixed or not, direct ot overhead. So, no cost is 'only actual' - it's just not the right thing to say. Fixed and overhead costs are different terms and mean different things. It's pure costing terms and have nothing to do with SAP. If you want to expand your knowledge on costing analisys, search the Web with the key words and you will get your answer.

Regards,

Eli