overheads

Overheads are simultaneously caused by multiple products or cost centers. For example. the costs of the head of department are shared between all the products of the department concerned. Overhead costs are allocated to the individual products via distribution keys, so-called cost drivers or reference quantities. The counterpart to the overhead costs are the direct costs. In public administrations, as in other service industries, overheads are typically more dominant than direct costs.

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The principle of universality
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