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    Question

    Which category do Bad debt fall under? 

    A Production Overheads Correct Answer Incorrect Answer
    B Administration Overheads Correct Answer Incorrect Answer
    C Selling Overheads Correct Answer Incorrect Answer
    D Distribution Overheads Correct Answer Incorrect Answer
    E Other Overheads Correct Answer Incorrect Answer

    Solution

    Bad debts are classified as selling overheads because they are costs that arise from extending credit to customers, which is part of the sales process. These debts are recorded when customers fail to pay the amounts owed, impacting the overall expenses related to selling products.

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