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Definition of "Works overheads"

are the indirect costs incurred in the production process. Works overheads include consumable stores and spares, depreciation of and machinery, factory building etc, lease rent of production assets, repair and maintenance of plant and machinery, factory building etc, indirect employees cost connected with production activities, drawing and designing department cost., insurance of plant and machinery, factory building, stock of raw material & WIP etc., amortized cost of jigs, fixtures, tooling etc and service department cost such as tool room, engineering & maintenance, pollution control etc.

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