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Overheads: Collection, Classification, Allocation, Apportionment and Absorption of Overheads (Primary and Secondary Distribution), Machine Hour Rate. Preparation of Cost Sheet, Operation Costing, Service Costing. Cost Ledger Accounting, Reconciliation of Cost and Financial Accounts. 1. Overheads: Overheads refer to the indirect costs incurred in the production or provision of services. These costs cannot be directly attributed to a specific product or service but are essential for the overall operations of a business. Managing overheads effectively is crucial for cost control and profitability. Collection: The collection of overheads involves the systematic gathering of data related to all indirect expenses incurred by a business. This includes items such as rent, utilities, depreciation, office supplies, administrative salaries, and more. Accurate and comprehensive data collection is essential for cost analysis and budgeting. A well-organized system of data collection ensures that no

Notes of  Cost accounting : Cost Ledger Accounting, Reconciliation of Cost and Financial Accounts.  Cost Ledger Accounting Introduction: Cost ledger accounting is a specialized accounting system designed to facilitate cost control and analysis within an organization. It involves the maintenance of separate ledgers that record cost-related information apart from the general financial accounts. This separation is critical for in-depth cost analysis, budgeting, and decision-making. 1. Key Concepts in Cost Ledger Accounting a. Separation of Financial and Cost Accounting: In cost ledger accounting, financial accounts are maintained separately from cost accounts. This separation allows for accurate cost analysis without interfering with the general financial records. b. Cost Centers: Cost ledger accounting often involves organizing costs by cost centers, which are specific segments or departments of an organization. This helps in pinpointing where costs are being incurred. c. Recording Costs