Which item is considered an overhead cost in business operations?

An overhead cost refers to expenses that are not directly tied to the production of goods or services but are necessary for running the business. These costs can include rent, utilities, and salaries of employees who aren't directly involved in production, such as management and supervisory staff.

Supervisory help falls under the category of overhead costs because it pertains to the salaries and related expenses of workers who manage or supervise other employees but do not directly contribute to the production of goods or services. Their role is crucial for maintaining operations and ensuring that production processes run smoothly, but their costs are not variable or fixed directly against the production output.

In contrast, materials are direct costs associated with creating a product, while profit is not considered a cost but rather the revenue remaining after costs are subtracted. Equipment finance entails costs associated with acquiring machinery or tools for production, which also qualifies as a direct cost related to production rather than overhead.