Which item is most likely indirect overhead?
Correct Answer
D) Office rent.
Office rent supports the business generally and is usually indirect overhead.
Why This Is the Correct Answer
Office rent supports the business generally and is usually indirect overhead.
Why the Other Options Are Wrong
Option A: Permit for one job.
Permit for one job. puts the item in the wrong financial bucket, timing, base, or comparison for chart of accounts.
Option B: Concrete for one slab.
Concrete for one slab. puts the item in the wrong financial bucket, timing, base, or comparison for chart of accounts.
Option C: Framing labor on one job.
Framing labor on one job. puts the item in the wrong financial bucket, timing, base, or comparison for chart of accounts.
Memory Technique
Controlling and supports point to different ledger roads for Coding Overhead.
Reference Hint
Study anchor (closed-book): memorize Chart of accounts from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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