Which of the following items may be included in a service firm's overhead cost?
i. Upstream costs such as research and development
ii. Downstream costs such as marketing
iii. Professional labour costs
A) i only
B) i and ii
C) i and iii
D) i, ii and iii

Question

Quizplus · Accepted Answer

Overhead costs in a service firm can include both upstream costs like research and development and downstream costs such as marketing. Professional labor costs are typically considered direct costs rather than overhead.

Which of the Following Items May Be Included in a Service