Stage 5 · Sharing the indirect costs
CAS-11: Administrative Overheads
The office never sews a stitch, yet the uniforms could not be sold without it. Which part of the office belongs in a uniform?
What you will learn in CAS-11
- What administrative overheads are (§§4.3, 5.1)
- Leases, software, exclusions and deductions (§§5.2–5.8)
- Sharing administrative cost (§6)
- Presentation and disclosure (§§7–8)
Chapters
- Who pays for the office? · Tick the office costs that count (§§4.3, 5.1–5.8)
- Part of the office makes uniforms · Split the office between making and selling (§§6.1, 6.2, 7)
- Spot the mistakes in the office statement · Four mistakes are hiding (§§5.2, 5.3, 5.6, 5.7, 8.1)
Key terms
- Administrative overheads (§§4.3, 5.1–5.8): The cost of all general management and administration. Not production overheads, not selling costs, not finance costs.
Common questions
Do administrative overheads form part of cost of production?
Only the part that relates to production. CAS-4 includes administrative overheads relating to production in cost of production; the rest is part of cost of sales.
CAS-11 (Limited Revision 2017), Administrative Overheads. Checked against the standard in November 2026. Selvi Garments, the school order and every figure in this lesson are fictional. Read the official text on the ICMAI Cost Accounting Standards page ↗ before applying it to real work.