Classification of Overheads
Classification of overheads by function, nature & behaviour explained for CA Inter May 2026 — with examples, High-Low method, and exam tips.
Paper 4 — Cost & Management Accounting · Chapter
Overheads — Absorption & ABC
Treatment of indirect costs — classification, allocation, apportionment, absorption rates, under/over-absorption, and Activity-Based Costing. Expect 10–12 marks per attempt.
9 microlessons in this chapter
Read each in 5 minutes. Each has worked examples + the bare-Act text for reference.
All lessons
1
→
2
Allocation of Overheads
Learn overhead allocation for CA Inter May 2026: how to distribute factory costs to departments, primary vs secondary distribution, with sol
→
3
Apportionment & Re-apportionment of Overheads
Master overhead apportionment & re-apportionment for CA Inter May 2026: direct, step, repeated distribution & simultaneous equation methods
→
4
Absorption of Overheads & Overhead Rates
Learn how overhead absorption works for CA Inter May 2026 — OAR methods, under/over absorption treatment, and ABC costing explained simply.
→
5
Under and Over-absorption of Overheads
Under & over-absorption of overheads explained for CA Inter May 2026: OAR calculation, causes, treatment methods, journal entries & exam tip
→
6
Activity-Based Costing (ABC)
Activity Based Costing (ABC) for CA Inter May 2026: steps, cost drivers, cost pools, worked examples and exam tips explained simply.
→
7
Advantages of Fixed/Variable Classification, Cost Allocation vs Apportionment, and Overhead Absorption
→
8
Departmentalisation and Six Methods of Overhead Absorption
→
9
Meaning of Overhead and Classification by Behaviour, Function, and Element
→