Leon started a project to design and create a new video game for the animation studio where he develops graphics and animations for video games and movies.Which item below would be considered an overhead cost?Computers used by staff during the projectResearch time to develop characters and storiesAnimations created for the gamePackaging for the video game
Question
Leon started a project to design and create a new video game for the animation studio where he develops graphics and animations for video games and movies.Which item below would be considered an overhead cost?Computers used by staff during the projectResearch time to develop characters and storiesAnimations created for the gamePackaging for the video game
Solution
The item that would be considered an overhead cost in this scenario is the "Computers used by staff during the project". Overhead costs refer to the ongoing expenses that are not directly tied to the production of a product or service, but are necessary for the overall operation of the business. In this case, the computers used by the staff are not directly creating the video game, but they are necessary for the staff to do their work.
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