Rahul Paul: Nurturing Minds through Tutoring

Answer

Overheads basically are expenses which are not directly attributable to each unit cost unlike direct expenses such as direct material and direct labour Rather overheads are dispersed /absorbed by each unit cost using an absorption rate or predetmined rate In this wat overheads are appotioned to each cost unit in accounts

Answer

depreciation is reduction in amount of depreciable asset due to normal wear and tear ,effluxtion of time,technological obsolecence and due to several market changes it is just like chanrging cost of product to p&l  the difference lies in treatment  depreciation is charged over its useful life in p&l as it is strictly based on matching principle types of depreciation (main) 1-straight line method 2-written down value method etc.