Question

Costs related to rent, utilities, administration, equipment use and/or depreciation are called overhead.

True
False

Answer 1

true
Typically, the price charged must cover more than labor costs figured at an hourly rate. There may be costs related to rent, utilities, administration, equipment use and/or depreciation. These costs are often called overhead.

Answer 2

Yes, the given statement is true.

Explanation:

There may be costs related to rent, utilities, administration, equipment use and/or depreciation.

These costs are called overhead.

So, this is a true statement.

Overhead expenses contains all the non labor expenses required to operate a business. These are indirect costs or fixed expenses that usually cover fields like rent, administrative costs and marketing costs.