Business FinancesQuestion 43 of 690
A contractor's job cost sheet shows: Materials $30,000, Labor $20,000, Subcontractors $15,000, Overhead allocation $10,000. What is the total direct job cost?
a.$65,000
b.$75,000
c.$50,000
d.$45,000
Explanation
Total job cost includes all costs attributable to the project: $30,000 + $20,000 + $15,000 + $10,000 = $75,000. All four items are legitimate project costs.
Practice all 690 questions free — no signup required.
Related questions on this topic
- What is the difference between "markup" and "margin"?
- A contractor has fixed monthly overhead of $10,000 and a variable cost ratio of 70% of revenue. What monthly revenue is needed to break even?
- Which of the following is considered a FIXED cost for a contracting business?
- A contractor takes out a $50,000 equipment loan at 8% annual interest. What is the simple interest owed for 6 months?
- Cash flow problems in contracting most commonly occur when:
- A contractor prepares an estimate and adds 15% to cover overhead and 10% profit on top of that. If direct costs are $50,000, what is the bid price?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California CSLB Contractor License Law & Business Exam · How we review