Which type of costs to fulfil a contract are excluded from being classified as assets?

Question

Quizplus · Accepted Answer

General and administrative costs are considered indirect costs and are not directly attributable to fulfilling a contract. Therefore, they cannot be classified as assets. Direct materials, direct labour, and costs that relate directly to a contract are all considered direct costs and can be classified as assets if certain criteria are met.

Which Type of Costs to Fulfil a Contract Are Excluded