Which of the following costs is considered overhead?
A) Indirect labor only
B) Indirect materials only
C) Indirect materials and indirect labor
D) None of these

Question

Quizplus · Accepted Answer

Overhead costs include indirect materials and indirect labor, as well as other indirect costs such as rent, utilities, and administrative expenses. Indirect materials are materials that are used in the production process but cannot be easily traced to specific products, while indirect labor refers to employees who do not directly produce the products, such as maintenance workers or supervisors. Both of these costs are considered indirect because they cannot be easily attributed to specific products or units of production.

Which of the Following Costs Is Considered Overhead