Planning & EstimatingQuestion 403 of 521

In a bid, what does overhead refer to?

a.The direct material used on the job
b.The direct labor installed on the job
c.The profit added to the price
d.Indirect business costs allocated to the job

Explanation

Overhead is the indirect cost of running the business (office rent, insurance, vehicles, tools, administrative staff) that must be recovered across jobs. Direct material, direct labor, and profit are separate line items in a bid.

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