Finanzas ComercialesPregunta 1114 de 1632
Overhead costs are best described as:
a.Ongoing costs not chargeable to a job
b.Costs that rise and fall with each job's size
c.The materials and labour bought for one job
d.The money left over after every cost is paid
Explicación
Overhead is the indirect, ongoing cost of running the business — rent, office wages, insurance, trucks, licences — which cannot be billed to any single job and must be recovered across all of them through markup. Costs that scale with the job are direct costs, and materials and labour for a job are the clearest example of direct cost. What is left after every cost is paid is net profit, which comes after overhead rather than being it.
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Preguntas relacionadas de este tema
- A contractor's annual overhead is $120,000 and he expects $600,000 in direct job costs this year. What overhead rate should he add to each job's direct cost to recover overhead?
- Which of the following is an example of OVERHEAD (indirect cost) rather than a direct job cost?
- A contractor's job has $10,000 direct costs. He adds 15% for overhead and then 10% profit on the resulting subtotal. What is the final price?
- A contractor completes $800,000 in revenue with $560,000 direct costs and $160,000 overhead. What is the net profit and net profit margin?
- If a contractor underestimates his overhead rate when bidding, the most likely result is:
- A contractor has fixed costs of $90,000 per year. His contribution margin (price minus variable cost) is 30% of revenue. What annual revenue does he need to break even?
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Revisado por Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verificar)