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These benefits are given in the form of overtime, extra-shift duty allowance, holiday pay, pension facilities etc. there are some non-cash fringe benefits also like canteen facility etc. Expenditure incurred on fringe benefits in respect of factory workers should be treated as factory overheads and apportioned among all the production and service departments on the basis of number of workers in each department. Fringe benefits of office and selling & distributing staff should be treated as administration overheads and selling and distribution overheads respectively and recovered accordingly.
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