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    Question

    In cost accounting, overheads are classified into

    various categories based on the nature of the expenses. Which category do Director’s remuneration and expenses fall under?
    A Production Overheads Correct Answer Incorrect Answer
    B Administration Overheads Correct Answer Incorrect Answer
    C Selling Overheads Correct Answer Incorrect Answer
    D Distribution Overheads Correct Answer Incorrect Answer
    E Other Overheads Correct Answer Incorrect Answer

    Solution

    Director's remuneration and expenses are considered part of administration overheads because they relate to the overall management and administrative functions of the company. Administration overheads cover costs that are necessary for the general administration and management of the business, including executive salaries, office supplies, utilities, and other general administrative expenses.

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