The following table shows the cost of producing different units of ball point pens by a firm.Table 8.1

-For a steel manufacturing firm, overhead costs would include:
A)cost of iron ore.
B)cost incurred in buying blast furnaces.
C)insurance premiums of the firm.
D)wages of the workers.
E)cost of electricity for running the machines in the factory.

Question

The following table shows the cost of producing different units of ball point pens by a firm.Table 8.1
 
-For a steel manufacturing firm, overhead costs would include:
A)cost of iron ore. 
B)cost incurred in buying blast furnaces. 
C)insurance premiums of the firm. 
D)wages of the workers. 
E)cost of electricity for running the machines in the factory.

Quizplus · Accepted Answer

Overhead costs are indirect costs that are not directly tied to production. Insurance premiums are an example of such costs.

The Following Table Shows the Cost of Producing Different Units