English

An example of a production overhead would be ______.

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Question

An example of a production overhead would be ______.

Options

  • Material

  • Rent

  • Labour cost

  • Supervisory cost

MCQ
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Solution

An example of a production overhead would be supervisory cost.

Explanation:

Supervisory cost is a production overhead because it is an indirect cost incurred in the manufacturing process. The salary of a factory supervisor cannot be directly traced to the production of a specific product, but is necessary for supervising and managing the production activities. Hence, it is classified as a production overhead.

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Elements of Cost
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Chapter 8: Fundamental Concepts of Cost - EXERCISES [Page 137]

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Goyal Brothers Prakashan Commercial Applications [English] Class 10 ICSE
Chapter 8 Fundamental Concepts of Cost
EXERCISES | Q 26. | Page 137
Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 8 Fundamental Concepts of Cost
EXERCISES | Q 17. | Page 150
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