This question has came up lots in p2 but my book dosent have anything to do with it,could someone explain please how a business monitors it's overheads??
Check the marking scheme
Usually only 3 main theory questions come up on this and they're like this:
3 Suitable procedures to monitor overheads?
Set budgets (targets) for overheads
Record actual figures for these overheads
Compare the two overheads and decide where to make changes necessary
Why does a business monitor its overheads?
To predict if there will be shortfalls
To identify if the company will be living within its means
To see if its necessary to obtain loans
Oh and how can one of these overheads be decreased (usually wages)
Replace workforce with machinery
Decrease overtime payments