Which of the following costs should be considered as overhead in business?

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The consideration of overhead costs in business is crucial for understanding the expenses that are necessary for running operations but are not directly tied to specific projects or production. Overhead costs typically include expenses that support the overall business but do not generate revenue directly.

In this context, obtaining jobs, supervisory, and nonproductive help all fall into the category of overhead. Obtaining jobs involves the processes related to bidding and winning contracts, which is essential for sustaining business operations. Supervisory costs relate to management oversight necessary for project execution, ensuring all tasks align with company standards and regulations. Nonproductive help refers to staff members whose roles do not directly contribute to the production of goods or services but are essential for the organization’s infrastructure, such as administrative personnel.

Each of these elements contributes to the organizational framework that allows a business to function effectively. Unlike project-specific expenses, overhead costs are often ongoing and necessary for the overall success of the company, justifying their classification as overhead.

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