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.

---

Definitions:

Production Function

A mathematical relation that expresses the relationship between inputs used in production and the output produced.

Minimizing Unit Costs

The process of reducing the cost per unit of production in order to achieve greater efficiency and profitability.

Price Ratio

The proportional relationship between the prices of two goods, indicating how many units of one good can be exchanged for one unit of another good.

Short-Run Total Cost Function

A mathematical representation of the total cost involved in the production of goods or services, considering all expenses over the short term.