The correct answer is: D. administration overhead.
Audit fees are a type of administrative expense that companies incur to ensure the accuracy and reliability of their financial statements. They are typically paid to external auditors, who are independent professionals who review a company’s financial statements to ensure that they are in accordance with generally accepted accounting principles (GAAP).
Selling overhead is a type of expense that companies incur in order to sell their products or services. This includes costs such as marketing, sales commissions, and customer service.
Distribution overhead is a type of expense that companies incur in order to get their products or services to customers. This includes costs such as warehousing, shipping, and delivery.
Works on cost is a type of expense that companies incur in order to produce their products or services. This includes costs such as direct labor,
direct materials, and factory overhead.In conclusion, audit fees are a type of administrative expense, not a type of selling, distribution, or works on cost expense.