Special Features of Construction Companies' Financial Statements

Overhead Costs

According to IAS 2, fixed and variable production overhead costs are distinguished. Fixed production overhead costs are those not directly attributable production costs that are relatively independent of the production volume, such as depreciation, amortization and maintenance costs of plant und equipment as well as management and administration costs.

Variable production overhead costs are those not directly attributable production costs that vary directly or approximately with the production volume, such as material overhead costs and production overhead costs.