Which of the following is NOT considered company overhead?

Labor is typically considered a direct cost associated with producing goods or services, rather than overhead. In the context of a plumbing business, labor costs refer to the wages paid to workers who directly engage in plumbing tasks, such as installations or repairs. These costs are directly tied to the revenue-generating activities of the business.

On the other hand, company overhead encompasses costs that are necessary to run the business but do not directly contribute to the creation of a product or service. This includes expenses like office supplies, utilities (such as electricity and water), and equipment necessary for the administration of the business. Since these costs are essential for day-to-day operations but not directly tied to specific projects, they are categorized as overhead. Understanding this distinction is critical for accurate budgeting and financial analysis in a plumbing business.