Question

Multinational companies overhead based on their function

Answer 1

Explanation:

The overhead expenses vary depending on the nature of the business and the industry it operates in. ... and they can increase or decrease with different levels of business activity.

Answer 2

Answer:

➡ Overheads are business costs that are related to the day-to-day running of the business. Unlike operating expenses, overheads cannot be traced to a specific cost unit or business activity. Instead, they support the revenue-generating activities of the business.

For example, a vehicle retail company pays a premium rent for business space in an area with adequate space to accommodate a showroom. The premium rent is one of the overhead costs of the business. A business must pay its overhead costs on an ongoing basis, regardless of whether the products are selling or not.✔✔