Which of the following costs would be considered overhead in the production of chocolate chip cookies?
A)flour
B)chocolate chips
C)sugar
D)oven electricity

Question

Quizplus · Accepted Answer

Overhead costs are indirect costs that cannot be traced back to a specific product or service. Oven electricity is an indirect cost that is incurred to produce chocolate chip cookies and cannot be traced back to a specific ingredient or labor cost. The cost of flour, chocolate chips, and sugar are direct costs as they are directly related to the production of the cookies.

Which of the Following Costs Would Be Considered Overhead in the Production