Which of the following is NOT an example of a direct cost?

You must consider direct costs, indirect costs, overhead costs, and general and administrative costs during cost estimating. Which of the following is NOT an example of a direct cost?Direct costs are incurred for the exclusive benefit of a project (for example, salary of the project manager, materials used by the project, and subcontractor expenses). Indirect costs, also called overhead costs, are allocated to a project by its performing organization as a cost of doing business. These costs cannot be traced to a specific project and are accumulated and allocated equitably over multiple projects (for example, security guards, fringe benefits, and electricity).

Question:

Which of the following is NOT an example of a direct cost?

Options:

Salary of the project manager

Subcontractor expenses

Materials used by the project

Electricity

Correct Answer

The Correct Answer for this Question is

Electricity

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