Question

Projects often include indirect costs that are necessary to keep the organization running, but are not associated with one specific project. Which of the following items are most typically considered to be indirect costs?A. travel cost for the project teamB. the cost of labor provided by project team members, consultants and subcontractorsC. executive salaries, utilities and insuranceD. costs associated with material and purchased parts

Answer 1

The correct answer is letter "C": executive salaries, utilities and insurance.

Step-by-step explanation:

Direct costs are those related directly to production. Direct materials, direct labor, and factory overhead are the most common direct costs. Direct costs can be traceable. On the other hand, indirect costs are those that are not related to production but are necessary for the operations of the business. Rent, insurance, utilities, and managers' wages are examples of indirect costs. These costs are difficult to track.