____ costs in many firms represent a much higher percentage of product costs than direct labor.
A) Nonvalue-added
B) Failure
C) Overhead
D) Appraisal
E) Control

Question

Quizplus · Accepted Answer

Overhead costs, which include indirect labor, rent, utilities, and other indirect expenses, often represent a higher percentage of product costs compared to direct labor costs. Direct labor costs are directly related to the production of a product, while overhead costs are necessary but do not directly add value to the final product. Therefore, reducing and managing overhead costs is critical for improving profitability and competitiveness.

____ Costs in Many Firms Represent a Much Higher Percentage