The regular ongoing operating expenses of a business, including rent, utilities, upkeep, taxes, administrative salaries; costs not directly associated with the product/service.

The regular ongoing operating expenses of a business, including rent, utilities, upkeep, taxes, administrative salaries; costs not directly associated with the product/service.

• A. Price
• B. Overhead
• C. Principal
• D. Partnership

Answer: (B)

Overhead costs are the regular, ongoing expenses needed to run a business but not tied to producing a specific product or delivering a particular service. Rent, utilities, upkeep, taxes, and administrative salaries all fall into this category because they support the business as a whole rather than being variable costs linked to a single product. This is different from price, which is the amount charged to customers for a product or service; principal, which refers to a loan amount or a main person related to the business; and partnership, which is a type of business arrangement. So, these expenses are overhead.

Overhead costs are the regular, ongoing expenses needed to run a business but not tied to producing a specific product or delivering a particular service. Rent, utilities, upkeep, taxes, and administrative salaries all fall into this category because they support the business as a whole rather than being variable costs linked to a single product. This is different from price, which is the amount charged to customers for a product or service; principal, which refers to a loan amount or a main person related to the business; and partnership, which is a type of business arrangement. So, these expenses are overhead.