Indirect costs incurred in the execution of sales order is termed distribution overheads. Some examples of distribution overheads are as follows:
- Indirect material
a. Cost of packing material.
- Oil, grease, spare parts, etc., for maintaining delivery vans.
- Indirect wages
- Salaries of go down employees.
- Wages of drivers of delivery vans.
- Wages of packers and dispatch staff.
- Indirect expenses
- Packing expenses
- Go down rent, insurance, depreciation, repair, etc.
- Outward freight carriage and other transport charges.
- Running expenses of delivery vans, expenses incurred for their repair and depreciation.
- Insurance in transit, etc.
Elements of cost
a. Direct material
- Direct labor
- Direct expenses
- Overheads
- Factory overheads
- Selling and distribution overheads
- Office and administration overheads
- Indirect material
- Indirect labor
- Indirect expenses
- Indirect material
- Indirect labor
- Indirect expenses