Which of the following items is considered branch overhead?

Branch overhead refers to the ongoing expenses that are necessary for the operation of a branch but are not directly tied to the production or delivery of goods and services. These costs support the business as a whole and do not vary directly with sales volume or production levels.

Rent falls into the category of branch overhead because it is a fixed cost associated with maintaining a physical location for the business. This expense is incurred regardless of how much business the branch does, making it essential for ensuring that the branch can operate effectively. Employees and their commissions, vehicle maintenance costs, and sales promotions usually have a closer association with specific revenue-generating activities, while rent remains a stable cost required to keep the branch functioning.