Non Productive Overhead

A CEO is generally classified as non-productive overhead in accounting terms. Non-productive overhead refers to expenses that do not directly contribute to the production of goods or services but are necessary for the overall operation of the business. This includes salaries and benefits for executives and administrative staff, office rent, utilities, and other general administrative expenses. While a CEO's role is crucial for the strategic direction and management of the company, their costs are not directly tied to the production process.

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