Which cost category usually includes costs like insurance, permits, and security?
A. Direct costs
B. Overhead costs
C. Indirect costs
D. Contingency costs
Answer (2)
Overhead costs include expenses like insurance, permits, and security, which are necessary for running a business but not directly tied to production. These costs differ from direct costs that directly relate to manufacturing goods or services. Identifying these categories aids effective budgeting and resource management. ;
The correct answer to the question is B. Overhead costs, which typically include expenses like insurance, permits, and security, are necessary for business operation but not directly linked to production. Identifying these costs assists in effective budgeting and resource management.
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