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Commerce · Q128

Costing

Graduate and Post Graduate · Commerce · question 128

Q128

Directors remuneration and expenses form part of ________.

A.
production overhead
B.
administrative overhead
Answer
C.
selling overhead
D.
distribution overhead

Answer: Option B

Solution

Answer: Option B
Solution:
Directors remuneration and expenses form part of administrative overhead. Administrative overhead includes the expenses related to the administration and general operations of the business.