What kind of cost is included in F.O.H (Factory Overhead)? 1. Direct Cost 2. Indirect Cost

Indirect "Fixed" Cost because you can't assign it to a specific production line or even a department.
that's why we use Overhead allocation through cost pools, cost drivers along with cause and effect to check the profitability of each department or segment, and to remind the segments that common costs exist.

Indirect Cost

2 .
Indirect cost

Indirect cost

Indirect cost

indirect cost off curse

INDIRECT COST

Answer (2) is the correct answer.

Indirect costs will be included in the F.O.H.
For further information: Direct costs are those which are directly identifiable with a specific cost unit or cost center.
It has the following three types: -Direct material; -Direct Expese; -Direct Expense.
Indirect cost are those which can't be directly identified with a specific cost unit or cost center.
some of the examples are: -Indirect Material; -Indirect Labor; -Indirect Expense.

specific cost unit or cost center. It has the following three types: -Direct material; -Direct Expese; -Direct Expense. Indirect cost are those which can't be directly identified with a specific cost unit or cost center.

2)----------Indirect Cost