Which of the following costs is considered overhead?
A)Indirect labor costs only
B)Direct materials costs only
C)Both indirect materials and indirect labor costs
D)Direct materials and direct labor costs

Question

Quizplus · Accepted Answer

Overhead costs are indirect costs related to the production process but not directly attributable to a specific product or service. Indirect materials and indirect labor costs are both examples of overhead costs. Direct materials and direct labor costs are considered direct costs as they can be traced directly to a product or service being produced.

Which of the Following Costs Is Considered Overhead