{"id":108,"date":"2016-09-02T05:04:41","date_gmt":"2016-09-02T04:04:41","guid":{"rendered":"https:\/\/www.feverbee.com\/roi\/?p=108"},"modified":"2026-03-16T21:38:19","modified_gmt":"2026-03-16T21:38:19","slug":"cost-of-investments-allocation-of-fixed-overheads","status":"publish","type":"post","link":"https:\/\/www.feverbee.com\/roi\/cost-of-investments-allocation-of-fixed-overheads\/","title":{"rendered":"Allocation of Fixed Overheads"},"content":{"rendered":"<section class=\"content standard\"><div><\/p>\n<p><aside class=\"\"><\/p>\n<h1>5<\/h1>\n<h2>5.4: Allocation of Fixed Overheads<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-7\" src=\"\/wp-content\/uploads\/sites\/2\/2016\/09\/sponsored-by-sap.png\" alt=\"Sponsored by SAP\" width=\"113\" height=\"65\" \/><\/p>\n<p><\/aside><\/p>\n<p><article class=\"\"><\/p>\n<h3>The final category of costs include the overhead costs incurred in running the community. Overhead costs refer to any costs that cannot be directly attributed to a single activity performed by the organization and are, thus, spread over all the organization\u2019s activities.<\/h3>\n<p>It is tempting to ignore the <a href=\"http:\/\/www.accountingtools.com\/overhead-allocation\">allocation of overheads<\/a>; however, this leads to a mistaken understanding of the costs incurred in running the community. There are two types of overhead costs, namely fixed and variable. Fixed overhead costs are those which remain constant, even as production increases. This typically includes rent, depreciation, insurance, cleaning, etc. Variable overhead costs are those that increase with the scope of the project. For example, this would include supplies of stationery, repairs, coffee in the kitchen, etc.<\/p>\n<p>Ideally, an individual would be able to use what percentage of the overhead costs should be assigned to the community project based upon the community\u2019s scope, number of people involved, time required, etc. Practically, it is more likely to be assigned by the accounting department.<\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Overheads<\/b><\/p>\n<p><span style=\"font-weight: 400\">(% of fixed overhead costs)<\/span><\/td>\n<td><b>Ongoing<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Fixed overhead costs (office, equipment, insurance, depreciation, etc.)<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Variable overhead costs (supplies, repairs, etc.)<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400\">We have included a breakdown of overhead costs below:<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"screenshot alignnone wp-image-501 size-full\" src=\"\/wp-content\/uploads\/sites\/2\/Screenshot-2016-08-31-12.01.14.png\" alt=\"screenshot-2016-08-31-12-01-14\" width=\"1306\" height=\"83\" \/><\/p>\n<p><\/article><\/p>\n<p><\/div><\/section>\n<section class=\"summary\"><div><article><h2>Summary<\/h2><\/p>\n<ol>\n<li>Don\u2019t ignore fixed and variable overhead costs incurred as a result of the community.<\/li>\n<li>Fixed overheads remain consistent as the community grows.<\/li>\n<li>Variable overheads rise as the community grows (although this is not a direct correlation).<\/li>\n<li>Speak to someone from the finance or accounting department to collect this data.<\/li>\n<\/ol>\n<p><\/article><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-108","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.feverbee.com\/roi\/wp-json\/wp\/v2\/posts\/108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.feverbee.com\/roi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.feverbee.com\/roi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.feverbee.com\/roi\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.feverbee.com\/roi\/wp-json\/wp\/v2\/comments?post=108"}],"version-history":[{"count":0,"href":"https:\/\/www.feverbee.com\/roi\/wp-json\/wp\/v2\/posts\/108\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.feverbee.com\/roi\/wp-json\/wp\/v2\/media?parent=108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.feverbee.com\/roi\/wp-json\/wp\/v2\/categories?post=108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.feverbee.com\/roi\/wp-json\/wp\/v2\/tags?post=108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}