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(@002702734)
Joined: 9 months ago
Posts: 1
17/09/2020 10:03 am  

My caterer bookkeeping client wants to know the overhead for the past several months.  Should I include the fixed wages he pays his chefs and the resulting payroll tax expense?  

thanks for any help


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(@casey-4)
Joined: 1 year ago
Posts: 131
17/09/2020 12:42 pm  

I would say so.  Unless he only pays his chef for meals created and sold.


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 Lorin+Browning
(@Lorin Browning)
Joined: 2 months ago
Posts: 8
17/09/2020 9:26 pm  

Stolen from the internet (author unknown): Overhead expenses are all costs on the income statement except for direct labor, direct materials, and direct expenses. Overhead expenses include accounting fees , advertising , insurance , interest , legal fees , labor burden , rent , repairs , supplies , taxes , telephone bills , travel expenditures , and utilities . There are essentially two types of business overheads: administrative overheads and manufacturing overheads.

For an attributed source which covers more, see:  https://www.wallstreetmojo.com/overhead-costs/

But since overhead is normally a concept of cost accounting or managerial accounting and not financial accounting, I think the answer should be:  It depends upon what management wants or finds useful in running the business.

 

 


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