Question

Overhead includes all except _____________________.

Question 11 options:

variable cost


taxes


rent


salaries

Answer 1

Taxes

Explanation: As taxes are paid on the profits, so until you have earned the you are not eligible to pay them. Whereas other overheads are included such as variable costs, salaries or rent.

Answer 2

overhead includes all expect Variable cost

Step-by-step explanation:

Overhead cost are cost or expenses incurred in the operation of a company that is not related directly to the production or manufacture of goods and services by a company.

Variable cost is change in the cost of production or business activity of a company hence is it not considered an overhead cost example of such is the change in cost of raw materials

Taxes : they are incurred while running a business but they are not incurred in the line of production hence its considered an overhead cost

Rent : this is a fixed cost incurred in the running of a business because you have to pay for the premises been used by your company,this is not incurred while production is taking place

salaries : to successfully run a business need to pay salaries as expenses incurred to run the business not as expense incurred to produce goods and services