Business FinancesQuestion 311 of 1632
Which of the following would be classified as a DIRECT cost on a specific project's job cost report?
a.The bookkeeper's salary at the main office
b.Electricity for the company's headquarters
c.Advertising for the contracting business
d.Wages of carpenters on that project
Explanation
Direct costs are traceable to a specific project, such as the wages of workers on that job, its materials, and its subcontractors. Office salaries, headquarters utilities, and advertising are overhead (indirect).
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Related questions on this topic
- Including a contingency line item in a project budget is intended to:
- Which of the following is a VARIABLE cost that rises and falls with the volume of construction work performed?
- Job costing is BEST described as a system that:
- A contractor's income statement for the year shows revenue of $800,000, job costs of $560,000, and overhead of $160,000. What is the net profit?
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- The PRIMARY purpose of preparing a business budget for the upcoming year is to:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)