{"id":999976307,"date":"2025-06-30T23:51:02","date_gmt":"2025-06-30T16:51:02","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999976307"},"modified":"2026-06-09T13:48:34","modified_gmt":"2026-06-09T06:48:34","slug":"what-is-overhead-cost","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/","title":{"rendered":"What is Overhead Cost? Visual examples of types of overhead costs"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In the process of operating a business, in addition to direct costs such as raw materials or labor, there is a group of costs that are not easily identified but have a great impact on profits - that is overhead costs, also known as general costs. So what are overhead costs, how many types are there and how to manage them to optimize financial performance?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, Bizzi will provide clear concepts, classify general costs, and provide practical examples to help businesses and accountants more easily control and allocate costs more reasonably.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#1_Overhead_cost_la_gi_Gioi_thieu_tong_quan_ve_Chi_phi_chung_Overhead_Cost\" >1. What is Overhead Cost? Overview of Overhead Cost<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#11_Dinh_nghia_va_Khai_niem\" >1.1. Definitions and Concepts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#12_Dac_diem_cua_Chi_phi_chung\" >1.2. Characteristics of General Costs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#2_Cac_loai_hinh_va_Vi_du_ve_Chi_phi_chung\" >2. Types and Examples of Overhead Costs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#21_Phan_loai_Chi_phi_chung\" >2.1. Classification of General Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#22_Vi_du_pho_bien_ve_Chi_phi_chung\" >2.2. Common Examples of Overhead Costs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#3_Tinh_toan_va_Phan_bo_Chi_phi_chung\" >3. Calculation and Allocation of Common Costs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#31_Cong_thuc_va_Phuong_phap_chung\" >3.1. General Formula and Method<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#32_Cac_phuong_phap_tinh_toan_Overhead_Cost\" >3.2. Methods of calculating Overhead Cost<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#33_Cac_phuong_phap_phan_bo_chi_phi_gian_tiep_cu_the\" >3.3. Specific indirect cost allocation methods<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#4_Tam_quan_trong_cua_viec_quan_ly_Chi_phi_chung\" >4. The Importance of Managing Overhead Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#5_Giai_phap_va_Bien_phap_toi_uu_hoa_Chi_phi_chung\" >5. Solutions and Measures to Optimize General Costs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#51_Cac_giai_phap_chung\" >5.1. General solutions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#52_Cac_he_thong_quan_ly_chi_phi_chuyen_biet\" >5.2. Specialized cost management systems<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#53_Ung_dung_cong_nghe_trong_quan_ly_chi_phi_Dac_biet_voi_Bizzi\" >5.3. Applying technology in cost management (Especially with Bizzi)<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#531_Xu_ly_doi_chieu_va_quan_ly_hoa_don_dau_vao_IPA_3way\" >5.3.1. Processing, reconciling and managing input invoices (IPA + 3way)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#532_Quan_ly_chi_tieu_doanh_nghiep_Bizzi_Expense\" >5.3.2. Business Expense Management (Bizzi Expense)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#533_Quan_ly_cong_tac_phi_Bizzi_Travel\" >5.3.3. Travel expense management (Bizzi Travel)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#534_Hoa_don_dien_tu_B-invoice\" >5.3.4. Electronic invoice (B-invoice)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#535_Quan_ly_cong_no_ARM\" >5.3.5. Accounts Receivable Management (ARM)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#54_Giai_phap_Quan_ly_Chi_phi_san_xuat_chung_MOC\" >5.4. Manufacturing Overhead Cost Management (MOC) Solution<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#6_Xu_ly_phan_bo_thieu_va_thua_Chi_phi_chung\" >6. Handling Over and Under Allocation of General Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/bizzi.vn\/en\/what-is-overhead-cost\/#7_Ket_luan\" >7. Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_Overhead_cost_la_gi_Gioi_thieu_tong_quan_ve_Chi_phi_chung_Overhead_Cost\"><\/span><b>1. What is Overhead Cost? Overview of Overhead Cost<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Overhead Cost is an important concept in financial management and business accounting. Understanding <\/span><b>What is overhead cost?<\/b><span style=\"font-weight: 400;\"> Not only does it help business owners control their budgets well, it also optimizes operating costs, thereby improving profits.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"11_Dinh_nghia_va_Khai_niem\"><\/span><b>1.1. Definitions and Concepts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>What is overhead cost?<\/b><span style=\"font-weight: 400;\"> These are the accounts <\/span><b>indirect costs<\/b><span style=\"font-weight: 400;\"> arising in the course of business operations, but <\/span><b>cannot be directly attributed to a specific product or service<\/b><span style=\"font-weight: 400;\">. Unlike raw material costs or direct labor costs, overhead costs play a supporting role to ensure the entire system operates smoothly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These costs include, but are not limited to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Office rent, electricity, water costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Equipment and software maintenance costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Indirect staff salaries such as managers and administrative staff<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Office supplies, accounting, legal costs<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">From an accounting perspective, <\/span><b>overhead is an indispensable factor<\/b><span style=\"font-weight: 400;\"> when budgeting, calculating product costs and evaluating business performance. Correctly allocating overhead costs helps businesses avoid mispricing products or services, while ensuring financial statements accurately reflect the situation.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"12_Dac_diem_cua_Chi_phi_chung\"><\/span><b>1.2. Characteristics of General Costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Understanding the characteristics of overhead costs helps businesses analyze financial performance and make appropriate cost management decisions.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Occurs periodically, independent of production or sales:<\/b><span style=\"font-weight: 400;\"> Overhead costs typically come in the form of fixed costs such as office rent, utility bills, equipment maintenance, insurance costs, or administrative salaries. These expenses must be paid regularly even when the business does not have any new orders or production decreases.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Recognition on financial statements and impact on profits:<\/b><span style=\"font-weight: 400;\"> General expenses are shown in the Income Statement under operating expenses, reducing gross profit and directly affecting net income - an important indicator reflecting business efficiency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Must be accounted for accurately to optimize profits:<\/b><span style=\"font-weight: 400;\"> Correctly and completely identifying overhead expenses is an essential step to accurately calculating net profit. Effective overhead cost management helps businesses proactively control their finances, thereby being able to <\/span><a href=\"https:\/\/bizzi.vn\/chien-luoc-cat-giam-chi-phi-doanh-nghiep\/\"><span style=\"font-weight: 400;\">cut costs<\/span><\/a><span style=\"font-weight: 400;\"> unnecessary expenses and increase profitability.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Divided into different types:<\/b><span style=\"font-weight: 400;\"> Depending on their variability, overhead costs can be classified into fixed overhead, variable overhead, and semi-variable overhead. Proper classification will assist businesses in budgeting, cash flow tracking, and cost performance analysis.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"2_Cac_loai_hinh_va_Vi_du_ve_Chi_phi_chung\"><\/span><b>2. Types and Examples of Overhead Costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Overhead costs are expenses that are not directly related to the production of products or provision of services but are still necessary for the business to operate effectively. Understand and classify correctly <\/span><b>What is overhead?<\/b><span style=\"font-weight: 400;\"> Helps businesses better control finances, optimize profits and determine accurate prices.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"21_Phan_loai_Chi_phi_chung\"><\/span><b>2.1. Classification of General Costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Depending on the specific characteristics and activities, <\/span><b>overhead<\/b><span style=\"font-weight: 400;\"> can be classified as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/bizzi.vn\/chi-phi-co-dinh-la-gi\/\"><b>Fixed costs <\/b><\/a><b>(Fixed Overhead):<\/b><span style=\"font-weight: 400;\"> An expense that does not vary with output or activity levels over a given period of time. Examples include rent, depreciation of fixed assets, business insurance, administrative staff salaries, and business license maintenance fees.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/bizzi.vn\/chi-phi-bien-doi-la-gi-cach-tinh-chi-phi-bien-doi-va-giai-phap-toi-uu-danh-cho-doanh-nghiep\/\"><b>The variable costs <\/b><\/a><b>(Variable Overhead):<\/b><span style=\"font-weight: 400;\"> Varies with volume of production and business activities. For example: marketing costs, shipping costs, equipment maintenance as needed, legal costs as cases arise.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Semi-variable Overhead:<\/b><span style=\"font-weight: 400;\"> Combination of fixed and variable components. For example, electricity bill with a minimum fixed rate plus actual usage, employee commission based on sales.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost by function:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><a href=\"https:\/\/bizzi.vn\/chi-phi-quan-ly-doanh-nghiep-la-gi\/\"><b>Business management costs<\/b><\/a><b> (G&amp;A Overhead):<\/b><span style=\"font-weight: 400;\"> Including administrative salary, accounting, human resources, office supplies costs, outsourcing administrative services.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>General selling expenses:<\/b><span style=\"font-weight: 400;\"> Includes advertising costs, printing, sales events, CRM software, sales staff commissions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>General research and maintenance costs:<\/b><span style=\"font-weight: 400;\"> Occurs in businesses with R&amp;D departments or factories and technical workshops.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Manufacturing Overhead (MOC):<\/b><span style=\"font-weight: 400;\"> As an indirect cost in production, it is often underestimated but has a great impact on the price. Including: depreciation of machinery, indirect production personnel wages, factory electricity and water, quality inspection costs, consumables and equipment maintenance costs.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"22_Vi_du_pho_bien_ve_Chi_phi_chung\"><\/span><b>2.2. Common Examples of Overhead Costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Some recognizable examples in business operations:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Rent and utilities:<\/b><span style=\"font-weight: 400;\"> Including office rental costs, electricity, water, internet, phone, online meeting platforms such as Zoom, Google Meet.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Administrative costs:<\/b><span style=\"font-weight: 400;\"> Purchase of office equipment, printing paper, drinking water, outsourced accounting fees, periodic auditing fees.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Insurance:<\/b><span style=\"font-weight: 400;\"> Property insurance, professional liability insurance, health or accident insurance for employees.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employee benefits:<\/b><span style=\"font-weight: 400;\"> Internal event costs, office coffee and snacks, gym membership support, company retreat program.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"3_Tinh_toan_va_Phan_bo_Chi_phi_chung\"><\/span><b>3. Calculation and Allocation of Common Costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Overhead costs are indirect costs that cannot be directly linked to a specific product or service but are still necessary for the business to operate, such as rent, utilities, management staff salaries, etc. Calculating and properly allocating overhead costs is a key factor in determining the correct product price, controlling the budget and optimizing financial efficiency for the business.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"31_Cong_thuc_va_Phuong_phap_chung\"><\/span><b>3.1. General Formula and Method<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Overhead costs are typically recorded as centralized expenses, which are then allocated on a pro rata basis to specific departments or projects.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Overhead Ratio<\/b><span style=\"font-weight: 400;\"> = Total Indirect Costs \/ Allocation Measure<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span> <i><span style=\"font-weight: 400;\">(The allocation measure can be direct labor hours, labor costs, or machine hours.)<\/span><\/i><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>General costs include<\/b><span style=\"font-weight: 400;\">: Indirect materials + Indirect labor + Indirect costs (management, distribution, operation...)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Main indirect cost classification<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Production costs (factory rent, equipment maintenance, etc.)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Selling and distribution costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Administrative and management costs<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"32_Cac_phuong_phap_tinh_toan_Overhead_Cost\"><\/span><b>3.2. Methods of calculating Overhead Cost<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Absorption Costing<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> This is a traditional accounting method that allocates all overhead costs to production costs.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Advantage<\/span><\/i><span style=\"font-weight: 400;\">: Complies with GAAP standards, fully reflects all costs, supports accurate determination of selling price.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Disadvantages<\/span><\/i><span style=\"font-weight: 400;\">: May cause profit distortion if fixed costs are not fully allocated.<\/span><\/li>\n<\/ul>\n<p><b>3-step process<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost Allocation<\/b><span style=\"font-weight: 400;\">: Assign direct costs to cost centers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost Apportionment<\/b><span style=\"font-weight: 400;\">: Reasonable division of common costs for using departments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost Absorption<\/b><span style=\"font-weight: 400;\">: Allocate overhead costs to individual products or orders.<\/span><\/li>\n<\/ul>\n<p><b>Method <\/b><a href=\"https:\/\/bizzi.vn\/chi-phi-can-bien-la-gi\/\"><b>marginal cost<\/b><\/a><b> (Marginal Costing)<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Only include direct variable costs in product cost.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Benefit<\/span><\/i><span style=\"font-weight: 400;\">: Helps businesses make quick decisions when output changes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Distinctive<\/span><\/i><span style=\"font-weight: 400;\">: Fixed costs are not included in product costs, so it is easy to evaluate marginal profits for each unit of production.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"33_Cac_phuong_phap_phan_bo_chi_phi_gian_tiep_cu_the\"><\/span><b>3.3. Specific indirect cost allocation methods<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Depending on the characteristics of the business and industry, you can choose the appropriate cost allocation method:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>According to direct material cost<\/b><span style=\"font-weight: 400;\">: Suitable for manufacturing industries using many raw materials.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>According to direct labor costs<\/b><span style=\"font-weight: 400;\">: Suitable when labor is the main factor in production.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>By Prime cost percentage<\/b><span style=\"font-weight: 400;\">: Based on the total cost of materials and labor.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>By direct labor hours<\/b><span style=\"font-weight: 400;\">: Easy to apply when there is specific time data for each job.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Machine hour rate<\/b><span style=\"font-weight: 400;\">: Suitable for machinery-dependent manufacturing industries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>By product unit<\/b><span style=\"font-weight: 400;\">: Used for mass production lines.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Allocation by sales revenue ratio<\/b><span style=\"font-weight: 400;\">: Usually used for sales or distribution department.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"4_Tam_quan_trong_cua_viec_quan_ly_Chi_phi_chung\"><\/span><b>4. The Importance of Managing Overhead Costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Understanding <\/span><b>What is overhead?<\/b><span style=\"font-weight: 400;\"> (also known as <\/span><b>overhead cost<\/b><span style=\"font-weight: 400;\">) and effectively managing this group of costs plays an essential role in all production and business activities. General costs include expenses that do not directly create products but are still necessary for the business to operate such as: electricity and water costs, indirect employee salaries, depreciation of fixed assets, etc. Below are the reasons why businesses need to pay special attention to managing general costs:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Determine product cost<\/b><span style=\"font-weight: 400;\">: Reasonable allocation of overhead costs helps to fully calculate total production costs, thereby setting appropriate selling prices to ensure expected profits.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Effective cost management<\/b><span style=\"font-weight: 400;\">: Optimizing overhead costs is a practical way to reduce financial burden without compromising product or service quality.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Performance Evaluation<\/b><span style=\"font-weight: 400;\">: Tracking overhead costs helps businesses know which activities are costing too much so they can adjust or eliminate them if necessary.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Financial planning<\/b><span style=\"font-weight: 400;\">: Forecasting and controlling overhead costs provides a solid foundation for future budgeting and cash flow management.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Risk management<\/b><span style=\"font-weight: 400;\">: Analyzing indirect cost fluctuations over time helps businesses detect risks early and proactively respond.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Make the right investment decisions<\/b><span style=\"font-weight: 400;\">: Understanding what overhead costs are and operating costs helps businesses determine the profitability of a project before investing.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Business valuation<\/b><span style=\"font-weight: 400;\">: Overhead costs are one of the important factors in assessing the value of a business when raising capital or transferring.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Improve labor productivity<\/b><span style=\"font-weight: 400;\">: Tracking the relationship between indirect costs and performance helps improve operational processes and maximize resource efficiency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Business strategy orientation<\/b><span style=\"font-weight: 400;\">: Cost analysis helps identify areas, products or services with high profit potential to prioritize development.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Build optimal cost policy<\/b><span style=\"font-weight: 400;\">: Good management of general expenses creates the premise for building reasonable internal regulations, helping to control and coordinate spending more effectively.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Production orientation and human resource organization<\/b><span style=\"font-weight: 400;\">: Based on cost analysis, businesses can determine the appropriate production scale and optimal organizational structure.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Control indirect costs<\/b><span style=\"font-weight: 400;\">: Proactively monitoring and adjusting indirect expenses will help businesses improve overall profit margins.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In short, understanding <\/span><b>What is overhead cost?<\/b><span style=\"font-weight: 400;\"> and implementing appropriate overhead management methods not only helps businesses operate more efficiently but also creates sustainable competitive advantages in the market.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_Giai_phap_va_Bien_phap_toi_uu_hoa_Chi_phi_chung\"><\/span><b>5. Solutions and Measures to Optimize General Costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Overhead costs are one of the major factors affecting business profits but are often difficult to control due to their widespread distribution and difficulty in determining their true value. To optimize overhead costs effectively, businesses need to apply both strategic solutions and specialized support tools.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"51_Cac_giai_phap_chung\"><\/span><b>5.1. General solutions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Optimizing overhead costs is not just about cutting corners, but needs to be built on data analysis, risk assessment, and long-term efficiency. Here are some practical solutions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Identify and analyze costs<\/b><span style=\"font-weight: 400;\">: Review details of items such as service bills, indirect staff salaries, office rental costs, etc. to determine which costs can be cut or optimized.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Optimize workflow<\/b><span style=\"font-weight: 400;\">: Automate and improve internal processes to minimize waiting time, limit errors, and increase productivity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Applying technology in cost management<\/b><span style=\"font-weight: 400;\">: Use accounting software, ERP software or cost management tools to track, control and analyze costs in real-time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Consider the value of expenses<\/b><span style=\"font-weight: 400;\">: Evaluate the effectiveness of each expense to identify non-value added costs and eliminate them appropriately.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Compare suppliers and renegotiate contracts<\/b><span style=\"font-weight: 400;\">: Look for suppliers with competitive prices and equivalent or better service.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Consider buying vs renting staff\/equipment<\/b><span style=\"font-weight: 400;\">: Calculate long-term costs to decide whether to outsource or maintain an in-house team for support departments such as IT, HR, maintenance, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Choose the right rental form<\/b><span style=\"font-weight: 400;\">Between lump sum and incidental rental, it is necessary to compare the total cost and the level of budget control to choose the most flexible solution.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Temporarily cut non-essential expenses<\/b><span style=\"font-weight: 400;\">: During difficult financial times, it may be possible to temporarily eliminate some non-essential expenses such as training costs and ineffective marketing.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Before implementing any solution, businesses should fully assess the influencing factors including financial, operational performance and related risks to avoid unwanted consequences.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"52_Cac_he_thong_quan_ly_chi_phi_chuyen_biet\"><\/span><b>5.2. Specialized cost management systems<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To optimize overhead costs in a systematic and transparent manner, businesses should consider implementing specialized financial management systems:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Budgeting<\/b><span style=\"font-weight: 400;\">: Helps plan budgets for each period, closely monitor <\/span><a href=\"https:\/\/bizzi.vn\/chi-phi-phat-sinh-la-gi-huong-dan-quan-ly-chi-tiet-va-cu-the-ve-chi-phi-phat-sinh\/\"><span style=\"font-weight: 400;\">costs incurred<\/span><\/a><span style=\"font-weight: 400;\"> actual vs. planned, so that timely adjustments can be made to avoid overspending.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Activity-Based Costing (ABC)<\/b><span style=\"font-weight: 400;\">: Effectively applied to manufacturing or large-scale enterprises, helping to accurately determine the costs of each activity, thereby detecting indirect costs that have not been reasonably allocated and finding solutions for improvement.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"53_Ung_dung_cong_nghe_trong_quan_ly_chi_phi_Dac_biet_voi_Bizzi\"><\/span><b>5.3. Applying technology in cost management (Especially with Bizzi)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Bizzi provides a comprehensive cost control system for businesses, acting as an AI assistant for the finance and accounting department in automating the revenue and expenditure process. This is an integrated platform with more than 30 features that help streamline and automate the process of cost management, debt collection and B2B payments.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"531_Xu_ly_doi_chieu_va_quan_ly_hoa_don_dau_vao_IPA_3way\"><\/span><b>5.3.1. Processing, reconciling and managing input invoices (IPA + 3way)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Managing incoming invoices is an important part of controlling overhead costs. With Bizzi, the entire process is automated, from receiving to reconciling and storing, helping businesses improve accuracy, save time and avoid financial risks.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automatically process input invoices<\/b><span style=\"font-weight: 400;\">: Use Bizzi Bot with RPA and AI technology to upload, check and reconcile invoices.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automatic invoice reconciliation \u2013 PO \u2013 GR<\/b><span style=\"font-weight: 400;\">: Reconcile invoice details with purchase orders (POs) and warehouse receipts (GRs) in real time to detect discrepancies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Verify valid supplier<\/b><span style=\"font-weight: 400;\">: Check tax code, activity status on tax system.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automatically record and store invoices<\/b><span style=\"font-weight: 400;\">: Store input invoices with a storage period of 10 years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Risky Invoice Warning<\/b><span style=\"font-weight: 400;\">: Detect invoices from suppliers that show signs of risk.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>API Integration with ERP &amp; Accounting Systems<\/b><span style=\"font-weight: 400;\">: Synchronize data with accounting software and business management systems.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"532_Quan_ly_chi_tieu_doanh_nghiep_Bizzi_Expense\"><\/span><b>5.3.2. Business Expense Management (Bizzi Expense)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">General expenses (<\/span><i><span style=\"font-weight: 400;\">overhead cost<\/span><\/i><span style=\"font-weight: 400;\">) arising from various operating activities within the enterprise. With <\/span><b>Bizzi Expense<\/b><span style=\"font-weight: 400;\">, businesses can set up, monitor and optimize the entire spending process flexibly and transparently, while ensuring compliance with internal financial principles.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Set up budgets by department\/project<\/b><span style=\"font-weight: 400;\">: Allocate budget to control spending.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Monitor spending and alert for budget overruns<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automated expense approval system<\/b><span style=\"font-weight: 400;\">: Speed up the spending request approval process.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Real-time expense tracking<\/b><span style=\"font-weight: 400;\"> and <\/span><b>Create detailed expense reports<\/b><span style=\"font-weight: 400;\"> by category, department or project.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Establish and enforce spending policies<\/b><span style=\"font-weight: 400;\"> to ensure compliance with company regulations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Flexible approval flow<\/b><span style=\"font-weight: 400;\"> and <\/span><b>Track spending request status<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Electronic invoice authentication<\/b><span style=\"font-weight: 400;\"> according to accounting regulations and <\/span><b>attach spending to each project\/task<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"533_Quan_ly_cong_tac_phi_Bizzi_Travel\"><\/span><b>5.3.3. Travel expense management (Bizzi Travel)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Travel expenses are a significant part of the overall cost (<\/span><i><span style=\"font-weight: 400;\">overhead cost<\/span><\/i><span style=\"font-weight: 400;\">) of many businesses, especially with organizations that have inter-provincial or international business activities. <\/span><b>Bizzi Travel<\/b><span style=\"font-weight: 400;\"> provides a comprehensive solution to control, optimize and make transparent all work costs from planning to approval and reporting.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automatic flight booking<\/b><span style=\"font-weight: 400;\">: Integrate with ticket booking services according to approved budget criteria.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Manage all business expenses<\/b><span style=\"font-weight: 400;\">: Airfare, hotel, transportation, food.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Set up business travel spending limits<\/b><span style=\"font-weight: 400;\"> for each employee or business trip.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Work approval process<\/b><span style=\"font-weight: 400;\"> in advance for travel and related expenses.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Business expense report<\/b><span style=\"font-weight: 400;\"> Overview by employee, trip, department.<\/span><\/li>\n<\/ul>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-999976280\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-expense.jpg\" alt=\"\" width=\"1920\" height=\"1080\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-expense.jpg 1920w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-expense-300x169.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-expense-1024x576.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-expense-768x432.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-expense-1536x864.jpg 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/06\/bizzi-expense-18x10.jpg 18w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/p>\n<h4><span class=\"ez-toc-section\" id=\"534_Hoa_don_dien_tu_B-invoice\"><\/span><b>5.3.4. Electronic invoice (B-invoice)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Issuing, storing and managing electronic invoices is an important factor that helps businesses control overhead costs in a transparent and legally compliant manner. With B-invoice, the entire invoice processing process is automated, helping to save time, minimize errors and improve financial efficiency.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Create electronic invoices according to prescribed standards<\/b><span style=\"font-weight: 400;\"> (XML\/PDF), meet tax authority requirements.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Custom Invoice Template<\/b><span style=\"font-weight: 400;\"> by logo, private brand.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Bulk Invoice<\/b><span style=\"font-weight: 400;\"> according to order, customer.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Direct connection to tax authority system<\/b><span style=\"font-weight: 400;\"> to validate the invoice.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Store invoices for at least 10 years<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Look up, download &amp; print invoices easily<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Manage invoice status<\/b><span style=\"font-weight: 400;\"> (released, sent, paid, canceled, adjusted).<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"535_Quan_ly_cong_no_ARM\"><\/span><b>5.3.5. Accounts Receivable Management (ARM)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Effective debt management not only improves cash flow but also helps reduce overhead costs (<\/span><i><span style=\"font-weight: 400;\">overhead cost<\/span><\/i><span style=\"font-weight: 400;\">) arising from bad debt, late payment and manual processing. <\/span><b>Bizzi ARM<\/b><span style=\"font-weight: 400;\"> Providing comprehensive debt management solutions, helping businesses monitor, reconcile and collect debts intelligently and promptly.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automatic debt reminder<\/b><span style=\"font-weight: 400;\"> according to the script via email, text message.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Track and reconcile debt<\/b><span style=\"font-weight: 400;\"> and metrics like DSO, debt aging report.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Debt due warning<\/b><span style=\"font-weight: 400;\"> or signs of expiration.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reconciliation of debts<\/b><span style=\"font-weight: 400;\"> and <\/span><b>create detailed debt report<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"54_Giai_phap_Quan_ly_Chi_phi_san_xuat_chung_MOC\"><\/span><b>5.4. Manufacturing Overhead Cost Management (MOC) Solution<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Intelligent asset management &amp; maintenance system (CMMS\/MMS)<\/b><span style=\"font-weight: 400;\">: Helps organizations more effectively approach automated maintenance planning, asset management, incident warnings, saving time, costs, and improving production efficiency.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Track maintenance activities<\/b><span style=\"font-weight: 400;\">: Manage equipment information (parameters, productivity, warranty), monitor equipment status, periodic maintenance alerts, calculate depreciation costs, maintenance, repair, downtime.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Use data to determine solutions<\/b><span style=\"font-weight: 400;\">: CMMS data helps make optimal decisions between repairing and replacing equipment, <\/span><a href=\"https:\/\/bizzi.vn\/toi-uu-chi-phi-dung-cach\/\"><span style=\"font-weight: 400;\">cost optimization<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Data analytics to measure and predict future MOC costs<\/b><span style=\"font-weight: 400;\">: Based on asset tracking data, customized reports can be generated, predicting costs for maintenance, parts replacement, employee salaries, utilities, facility rental, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Examples of solutions such as <\/span><b>MMS-X by VTI Solutions<\/b><span style=\"font-weight: 400;\"> Helps with scientific maintenance planning, real-time equipment information management, automatic fault warning, performance evaluation and predictive maintenance.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"6_Xu_ly_phan_bo_thieu_va_thua_Chi_phi_chung\"><\/span><b>6. Handling Over and Under Allocation of General Costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To optimize <\/span><b>overhead<\/b><span style=\"font-weight: 400;\"> In production, businesses increasingly focus on applying technology and modern management systems. One of the outstanding solutions is <\/span><b>CMMS\/MMS \u2013 smart maintenance and asset management system<\/b><span style=\"font-weight: 400;\">, helps control and optimize <\/span><b>overhead<\/b><span style=\"font-weight: 400;\"> comprehensively<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Deploying smart CMMS\/MMS system<\/b><span style=\"font-weight: 400;\">: Helps businesses create automated maintenance plans, manage assets in real time, issue failure alerts, and remotely monitor equipment performance. This helps reduce costs caused by unexpected downtime and extend equipment life.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Detailed tracking of maintenance activities<\/b><span style=\"font-weight: 400;\">: Store equipment information (performance, specifications, warranty period), monitor operating status, and remind about periodic maintenance schedules. This helps businesses control repair and depreciation costs and minimize them. <\/span><b>downtime<\/b><span style=\"font-weight: 400;\"> affect productivity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Leverage data to come up with optimal solutions<\/b><span style=\"font-weight: 400;\">: CMMS not only records the history of operation and maintenance but also helps analyze data to support decisions: repair or replace equipment. This helps businesses make timely decisions, avoid waste and reduce unnecessary investment costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Analyze and predict future MOC costs<\/b><span style=\"font-weight: 400;\">: Based on the data stored from the CMMS system, businesses can prepare more accurate financial reports, predict expenses related to technical personnel salaries, component replacement, periodic maintenance, rental costs, utilities, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Practical example \u2013 MMS-X by VTI Solutions<\/b><span style=\"font-weight: 400;\">: This is one of the advanced equipment &amp; maintenance management solutions, supporting AI-based maintenance planning, real-time machine health monitoring, early fault warning, helping to evaluate performance and provide accurate predictive maintenance actions.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Applying smart solutions such as CMMS\/MMS not only helps businesses solve problems <\/span><b>\u201cWhat is overhead cost\u201d<\/b><span style=\"font-weight: 400;\"> but also brings a new approach to <\/span><b>general cost management<\/b><span style=\"font-weight: 400;\">, reduce production risks and improve competitiveness in the market.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"7_Ket_luan\"><\/span><b>7. Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Clearly understand <\/span><b>What is overhead cost?<\/b><span style=\"font-weight: 400;\"> and how to classify the <\/span><b>overhead<\/b><span style=\"font-weight: 400;\"> will help businesses accurately assess operational efficiency and avoid uncontrolled spending. Tracking and analyzing overhead costs is not only an accounting requirement but also a core element of modern financial management strategies. To simplify this process, businesses can consider applying <\/span><b>Comprehensive solutions from Bizzi<\/b><span style=\"font-weight: 400;\"> \u2013 Support to optimize accounting processes, improve operational efficiency and minimize financial risks.<\/span><\/p>\n<p><b><i>Businesses register for trial at: <\/i><\/b><a href=\"https:\/\/bizzi.vn\/dang-ky-dung-thu\/\"><b><i>https:\/\/bizzi.vn\/dang-ky-dung-thu\/<\/i><\/b><\/a><b><i>\u00a0<\/i><\/b><\/p>","protected":false},"excerpt":{"rendered":"<p>In the process of operating a business, besides direct costs such as raw materials or labor, there is also a\u2026<\/p>","protected":false},"author":57,"featured_media":999976310,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[263,84],"tags":[],"class_list":["post-999976307","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kien-thuc","category-thiet-lap"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999976307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999976307"}],"version-history":[{"count":4,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999976307\/revisions"}],"predecessor-version":[{"id":999980909,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999976307\/revisions\/999980909"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999976310"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999976307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999976307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999976307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}