The correct answer is B. Administrative overhead.
Administrative overhead is a type of indirect cost that is incurred by a company in order to support its overall operations. It includes costs such as salaries and benefits for administrative staff, office rent, and utilities. Directors’ remuneration and expenses are also considered to be administrative overhead, as they are incurred in order to support the overall management of the company.
Production overhead is a type of indirect cost that is incurred in the manufacturing process. It includes costs such as depreciation of factory equipment, maintenance and repairs, and indirect labor. Selling overhead is a type of indirect cost that is incurred in the sales and marketing process. It includes costs such as salaries and benefits for sales staff, advertising, and travel expenses. Distribution overhead is a type of indirect cost that is incurred in the distribution process. It includes costs such as warehousing, shipping, and insurance.
In conclusion, directors’ remuneration and expenses form part of administrative overhead.