Sarah says that overhead includes utility, rent, and salary costs. Jonas says that overhead includes liabilities and accounts payable.
Disregard - The answer is Sarah.
Note: Costs of operating an office—rent, salaries, utilities, etc.—are considered overhead.
Sarah's definition of overhead is partially correct. Overhead typically includes the costs and expenses that a business incurs to maintain its operations, excluding direct costs associated with producing goods or delivering services. Some common examples of overhead costs are utility expenses, rent for office or production spaces, and salary costs for non-production employees.
However, Jonas' definition of overhead seems to be a bit different. Liabilities and accounts payable are not typically considered as part of overhead costs. Liabilities, such as loans, debts, or obligations, are financial obligations a business has to fulfill, while accounts payable represent the amounts owed to suppliers or vendors for goods or services purchased on credit terms. These are not considered overhead costs but rather financial obligations or short-term liabilities to be managed by the business.
To sum up, overhead costs generally include expenses like utility bills, rent, and salaries, while liabilities and accounts payable are financial obligations separate from overhead.