Which of the following would NOT be considered a direct activity cost?
A) Rework expenses
B) overhead costs
C) overtime salaries
D) costs to rent or purchase additional equipment
E) costs associated with increased coordination

Question

Which of the following would NOT be considered a direct activity cost? 
A) Rework expenses
B) overhead costs
C) overtime salaries
D) costs to rent or purchase additional equipment
E) costs associated with increased coordination

Quizplus · Accepted Answer

Overhead costs are not considered direct activity costs because they are not directly attributable to a specific activity or project, but rather are general business expenses that support the overall operation.

Which of the Following Would NOT Be Considered a Direct