Overhead Costs Include

question 73

Multiple Choice

Overhead costs include:

• A) Direct and indirect costs.
• B) Indirect costs only.
• C) Direct costs only.
• D) Neither direct nor indirect costs.

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Definitions:

Fiscal Year

A 12-month period used for accounting purposes and the preparation of financial statements, which may or may not align with the calendar year.

Discounted Note

A promissory note issued at a price lower than its face value that promises to pay the holder the full face value at maturity.

Journal Entry

A record in accounting journals that details a business transaction, including information about debits and credits to various accounts.

Overdue Account Payable

An obligation or debt that a company has not paid by its due date.