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Which of the following items is an example of an overhead expense?: (A)Rent on a factory. (B)Electricity, most of which is used to power a plant's machinery. (C)Raw materials used in manufacturing. (D)Shipping costs on goods sold. (Hint: Remember that overhead expenses are fixed costs, which must be paid regardless of the amount of business done.)

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A, the rent. If confused between A and B, remember that electricity is a cost that can fluctuate over the amount of business, as well as C and D.
User Shankar Prakash G
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