overhead expenses are A directly related to a specific depar

overhead expenses are: A. directly related to a specific deparment B. directly related to a specific product c. Contributing directly to the running of a business D. contributing indirectly to the running of a business Which one of these?

Solution

[ANSWER] D. Contributing indirectly to running of a business

Overhead expenses are all costs on the income statement except for direct labour, direct materials, and direct expenses. Overhead expenses include accounting fees, advertising, insurance, interest, legal fees, labor burden, rent, repairs, supplies, taxes, telephone bills, travel expenditures, and utilities.