Question

Repairs, taxes, insurance, rent are all examples of

• A. overhead expenses
• B. interest
• C. company profit
• D. cost price

Answer 1

The correct option is A overhead expenses

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, labour burden, rent, repairs, supplies, taxes, telephone bills, travel expenditures, and utilities.