Project managers are sometimes able to reduce indirect project costs by increasing direct costs.

Question

Quizplus · Accepted Answer

Increasing direct costs can sometimes lead to a reduction in indirect costs. For example, investing in better equipment may increase direct costs, but it can reduce the amount of time and money spent on maintenance, thus reducing indirect costs. Similarly, investing in better training or hiring more qualified staff can increase direct costs, but it can reduce the amount of time and money spent on correcting mistakes or rework, again reducing indirect costs. So, in some cases, increasing direct costs can be a strategic move to reduce indirect costs in the long run.

Project Managers Are Sometimes Able to Reduce Indirect Project Costs