L5: DIRECT AND INDIRECT COSTS

Question 1

What does direct cost includes?

Answer 1

1. Labor Costs
2. Materials Costs
3. Equipment Costs

Question 2

What does indirect cost includes?

Answer 2

1. Overheads
2. Administrative Costs
3. Contingency

Question 3

What are the examples of Overhead Costs?

Answer 3

1. Rents
2. Utilities
3. Maintenance

Question 4

What are the examples of Administrative Costs?

Answer 4

1. Salaries of Administrative Staff
2. Office Supplies
3. Legal Fees

Question 5

What are the examples of Contingency?

Answer 5

1. Unforeseen material price increase
2. Regulatory Changes

Question 6

What are the examples of Fixed Overhead?

Answer 6

1. Rent
2. Salaries of permanent staff
3. Insurance

Question 7

What are the examples of Variable Overhead?

Answer 7

1. Utilities
2. Materials
3. Hourly Labor