Which of the following is an accurate example of an overhead?
A) Cost of company cafeteria
B) Cost of instruments needed for production
C) Basic salary paid to every employee
D) Amount spent on raw materials for production

Question

Quizplus · Accepted Answer

An overhead is a cost that is related to running the business but cannot be directly attributed to the production of a specific product or service. The cost of company cafeteria is an example of overhead as it is a necessary expense for the business but cannot be directly tied to the production process.

Which of the Following Is an Accurate Example of an Overhead