Projects often include indirect costs that are not associated directly with one specific project.Which of the following items are most typically considered to be indirect costs?
A) costs associated with material and purchased parts
B) the cost of labor provided by project team members,consultants and subcontractors
C) executive salaries,utilities and insurance
D) travel cost for the project team

Question

Quizplus · Accepted Answer

Executive salaries, utilities, and insurance are typically considered indirect costs as they are not specific to one project, but rather shared across multiple projects or the overall organization. Costs associated with materials and purchased parts (A) and labor provided by project team members, consultants, and subcontractors (B) are more direct costs that are specifically tied to the projects they are being used for. Travel costs for the project team (D) can be indirect or direct depending on the specific circumstances.

Projects Often Include Indirect Costs That Are Not Associated Directly