Contracts & ExecutionQuestion 195 of 690
Which item is generally considered a direct (job) cost rather than overhead?
a.The contractor's office telephone bill
b.Annual liability insurance premium
c.The salary of the company bookkeeper
d.Lumber installed on a specific framing job
Explanation
Direct costs are traceable to a specific job — like lumber, job-site labor, and equipment rental for that job. Office phone, general insurance, and bookkeeper salary are indirect overhead.
Practice all 690 questions free — no signup required.
Related questions on this topic
- A contractor wishes to require a larger down payment than the law allows because a custom-ordered material must be paid for up front. The proper way to handle this is to:
- A contractor's overhead is best described as:
- On a home improvement contract, the start date and completion date provisions exist primarily to:
- A contractor marks up direct costs by 35%. If the markup amount on a job is $14,000, what were the direct costs?
- On a unit-price paving contract at $3.20 per square foot, the field measures 9,500 square feet actually paved. What is the contractor entitled to be paid?
- A contractor finishes substantially all work on a private project and submits a proper final invoice for $30,000 (the retention). The owner refuses to pay although there is no genuine dispute. The contractor's BEST first step is to:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California CSLB Contractor License Law & Business Exam · How we review