Business FinancesQuestion 55 of 1605
Which of the following best describes "overhead" in construction estimating?
a.Direct labor costs on a project
b.Profit added to the job cost
c.Material costs for a specific project
d.Indirect costs of running the business not tied to a specific job
Explanation
Overhead includes indirect costs like office rent, utilities, insurance, equipment depreciation, and administrative salaries — costs incurred to keep the business running regardless of any specific project.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)