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By using Jio telecommunications company , please identify some overhead costs in the manufacturing operations. What...

By using Jio telecommunications company , please identify some overhead costs in the manufacturing operations. What makes these overhead costs and what cost driver should be used to apply the overhead costs to the products? How their chosen company might be affected by overhead costs. Explain how Jio company of overhead costs and why your cost drivers.

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Answer #1

Following are overheads of the Jio-

a. License fees- cost driver for allocation to be No. of users

b. Tower rental for usage- cost driver to be no. of calls and messages

c. Power and fuel cost-cost driver to be no. of calls and messages

d. Repairs and maintenance of Towers- cost driver for allocation to be No. of users

Companies with increasing overhead costs will be significantly impacted severally negatively with more cash burns and less Profit after tax available. Further, increasing overhead costs could lead to less of cash availability for capex.

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