Question

Overhead costs include: A. Direct and indirect costs.B. Indirect costs only.C. Direct costs only.D. Neither direct nor indirect costs.

Answer 1

The correct answer is B. Indirect costs only.

Step-by-step explanation:

The definition for overhead costs is: all the expenses within a business that are not directly related to the production of a good or service.

Therefore we discard every answer that includes direct costs, and we can also discard answer D, because overhead costs DO include indirect costs. Therefore we're left with answer B as the correct choice.