CHAP8

Which of the following is a direct cost?

• Labor

• Rent

• Depreciation on equipment

• Health benefits

Which worker's wages would constitute a direct cost for a construction project?

• The project's cost accountant

• The brick mason

• The architect's assistant

• The foreman

Which of these indirect costs is typically classified as an overhead cost?

• Advertising

• Shipping

• Sales commissions

• Taxes

Which of these indirect costs is typically classified as a selling or administrative cost?

• Secretarial support

• Utilities

• Insurance

• Depreciation

Which of these is typically a recurring cost?

• Preliminary market analysis

• Personnel training

• Outplacement services

• Logistics

Which of these is typically a nonrecurring cost?

• Site study

• Labor

• Material

• Sales

The charge that is most likely a fixed cost is for:

• Materials.

• Equipment rental.

• Direct labor.

• Utilities.

You are probably looking at a bill for a variable cost when you are paying for:

• Leased capital equipment.

• Salaries.

• Materials.

• Health insurance.

A normal cost is incurred when:

• Overtime is used more than originally planned.

• Shipments are expedited.

• Additional temporary workers are brought on site.

• The aggressive baseline plan is adhered to.

Unplanned costs incurred when steps are taken to speed up a project's completion are called:

• Expedited costs.

• Accelerated costs.

• Pass-through costs.

• Normal costs.