Question 2

Accounting fees are included in company or general overhead.

Accounting fees are a recurring expense necessary for maintaining financial records and ensuring compliance with regulations, making them a fundamental part of a company's overhead costs.

A) Permits.

Permits are typically considered project-specific costs rather than general overhead. They are usually required for specific projects and do not represent ongoing operational expenses that apply to the entire company.

B) Temporary project storage.

Temporary project storage costs are directly associated with specific projects and are not classified as overhead costs. These expenses vary depending on the projects being undertaken and are not indicative of the company's overall operational expenses.

C) Accounting fees.

Accounting fees represent the costs incurred for financial management and reporting services, which are essential for the company's operations. These costs are considered general overhead as they are necessary for the overall functioning of the business, regardless of specific projects.

D) Equipment operating expenses.

Equipment operating expenses are often tied to specific machinery or equipment used in projects and may not be classified as general overhead. While they are necessary for operations, they are more project-related than reflective of the overall overhead structure.

Conclusion

Accounting fees are definitively included in company or general overhead because they are essential for the overall financial health and regulatory compliance of the business. In contrast, the other options represent either project-specific costs or expenses that do not apply universally across the company. Thus, they do not meet the criteria for general overhead.