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.