Question

Overhead costs include: Multiple Choice Direct and indirect costs. Indirect costs only. Direct costs only. Neither direct nor indirect costs.

Answer 1

Indirect costs only

Step-by-step explanation:

Overhead is defined as cost incurred by a business in running it's operations, it cannot be directly linked to a product in the manufacturing process.

These costs are incurred regardless of how successful a business is.

For example rent, tax, utilities, insurance, and maintenance of machinery are all overhead costs.

Since they do not contribute directly to the product they are referred to as indirect costs.