Which of the following is a type of overhead cost?

Overhead costs are expenses that are not directly tied to a specific project or job; instead, they are incurred to support the overall operations of a business and facilitate its functioning. Utility costs for office operations fall into this category because they are necessary for the general management and administration of the construction company's activities and do not directly contribute to a specific construction project.

These costs include electricity, water, heating, and other services required to maintain the office environment where workers and managers conduct business operations. Such expenses are essential for the ongoing functionality of the company, reflecting the indirect costs that are incurred regardless of the number of projects active at any given time.

Material handling equipment, job site trailers, and temporary labor costs, while critical to project execution, are typically allocated directly to specific projects, making them direct costs rather than overhead. This distinction is crucial for accurate budgeting and financial management in construction projects.