I'm looking for a standard rule to determine what costs should be included in indirect cost of sales overhead. For example, should the VP of Manufacturing be COS or Functional expenses? Should the cost accounting function be part of COS or part of general overhead?
I've heard companies using a rule of 2 steps removed from the production line, so therefore the neither would not be included in a large organization.
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Corinne Angotti CPA, CIA
Director/Manager
Racine WI
United States
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