The conversion process involves three common resources: material, direct labor and overhead. Which of the following is an example of overhead in that context?

Name: The conversion process involves three common resources: material, direct labor and overhead. Which of the following is an example of overhead in that context?
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Question

Quizplus · Accepted Answer

Overhead costs are indirect costs related to manufacturing, such as depreciation on factory equipment. The CFO's salary is not considered overhead in the context of manufacturing.

The Conversion Process Involves Three Common Resources: Material, Direct Labor