Burden VS Overhead 1

[NEWTKUO]

Is there anyone can tell me what is the differences between Burden and Overhead? Thanks a lot!

 

[IRstuff]

http://www.small-business-dictionary.org/default.asp?term=BURDEN

http://www.dla.mil/dss/dss-a/download/Tradoc IGCE Instr.pdf

http://www.ecmweb.com/mag/electric_calculating_true_labor/

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

 

[PSE]

For accounting purposes at places I have worked before:

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,

 

[Iskit4iam]

In different organizations these terms could mean exactly the same thing. What is important is what your organization defines them as and how they are used. In general these terms refer to costs that are shared across functions, products, departments, etc.

 

[apayams]

Hi there,
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