Large manufacturing establishments are being set up both in the private and public sectors. In these establishments, huge expenses of indirect nature are incurred for mass production. As a result, the cost of production in a modern unit is appreciably increasing. In many enterprises, overheads represent the second highest item of cost (after direct materials) incurred for production. This necessitates proper and effective accounting and control of overheads. It should be ensured that when the method of production does not undergo any change, there should not be any appreciable change in overhead. In this paper, overheads cost control is discussed.

KEYWORDS: Private and Public Sector, Control of Overheads, Large Manufacturing Establishments.