Question

In managerial accounting, how general burden is different with Fixed overhead burden?

Answer 1

Fixed Overhead Burden	General Burden
E.g. 1. Salary paid to permanent employees 2. Depreciation of Building/Plant and Equipments 3. Interest on Capital 4. Insurance	E.g. 1. Direct Labour Hour 2. Direct Wages 3. Machine Hours
These are the costs which are incurred for a period, and which, within certain output and turnover limits, tend to be unaffected by fluctuations in the levels of activity(output or turnover). They donot tend to increase or decrease with change in output.	They vary with the volume of activity. Any increase in the activity results in an increase in the general overhead and vice versa.
They dont affect the managerial decision making	They affect the managerial decisions
Fixed overhead are generally policy costs which cannot be easily reduced	Can be reduced with efforts so that operating margins are improved
Generally non controllable	Controllable