Question

A janitor cleaning a production facility would be considered: a) direct labor. b) overhead. c) asset.

Answer 1

A janitor cleaning a production facility would be overhead costs.

What is overhead costs?

Overhead cost is a part of cost of production, it includes the amount of money or expenses spent on daily basis in production.

These expenses are continuous and may not be easily attributed to a session of accounting. Example is labour cost.

Therefore, A janitor cleaning a production facility would be overhead costs.

Learn more on labour cost here,

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