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Commerce · Q54

Costing

Graduate and Post Graduate · Commerce · question 54

Q54

Overhead cost is the total of ________.

A.
all indirect costs
Answer
B.
all direct costs
C.
indirect and direct costs
D.
all specific costs

Answer: Option A

Solution

Answer: Option A
Solution:
Overhead cost is the total of all indirect costs. Overhead costs refer to those expenses associated with running a business that can't be linked to creating or producing a product or service.