True or false: overhead expenses

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Overhead expenses are added to the cost price.

2. Statement is true

   Yes

   Statement

   Cost price equals buying price plus overhead expenses.

3. Statement is true

   No

   Statement

   Overhead expenses are added to the selling price.

4. Statement is true

   Yes

   Statement

   Repairs and transport after buying count as overheads.

5. Statement is true

   Yes

   Statement

   Ignoring overheads overstates the profit.

Explanation