Factory Overheads : are the overheads which are incurred from the stage of procurement of materials till the stage of finished goods. They include:

- Indirect Materials such as lubricants, cotton waste, consumable stores etc.

- Indirect Labour such as storekeeper, time keeper, works manager’s salary etc.

- Indirect Expenses such as cost of factory lighting, carriage inward cost, depreciation on factory building, rent/insurance of building/machinery etc.