Burden VS Overhead
Burden VS Overhead
(OP)
Is there anyone can tell me what is the differences between Burden and Overhead? Thanks a lot!
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RE: Burden VS Overhead
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So, they are somewhat synonymous, but, burden is usually tied to labor as a multiplier to account for benefits, taxes, supervision, lost time, etc., as discussed in the last link above.
TTFN
RE: Burden VS Overhead
Burden - Applied to materials it represents the overhead that is directly related to handling materials (Purchasing, Inspection, stocking etc)
Overhead - Labor that is not directly involved in producing product (Design, Marketing, Accounting, HR, Facilities etc).
I suppose it helps create a distinction between Value Added, Semi-Value Added, and Non Value Added Activities.
Regards,
RE: Burden VS Overhead
RE: Burden VS Overhead
There is a Eng/Acc defenition for Burden
Overheads refer to fixed cost which won't be changed with sale ratio,but Burden will move with sale but the opposit way , let's say more sale , less Burden eg. rent is always fixed and never change with sale, but purchasing cost will go down once the sale is going up,
Cheers
Payam