What type of costs typically represent a much higher percentage of product costs than direct labour?
A)value-added costs
B)activity costs
C)overhead costs
D)consumption costs

Question

Quizplus · Accepted Answer

Overhead costs typically represent a much higher percentage of product costs than direct labor because they include indirect expenses such as utilities, rent, and administrative salaries that are not directly tied to the production of a specific product but are necessary for the overall operation of the business.

What Type of Costs Typically Represent a Much Higher Percentage