Which of the following is an example of a direct cost on an IT project

Salary of the project manager and subcontractor expenses
Property taxes paid by the company
Salary cost of accounting personnel
Electricity and heating

Expert Solution

Answer: Option a

Since this is an IT project, direct cost must be associated with factors which are making the project successful – suppose those factors are managers and subcontractors (just like materials and labors in a manufacturing unit), since they are directly involved in project running. Therefore, payment to those is direct cost.

Other options are not correct:

Option b: Property tax is indirect, since it doesn’t create effect in project running.

Option c: Accounting work in an IT sector is indirect in nature.

Option d: Electricity is also indirect, since accounting personnel are not IT professionals.

ekkarill92 answered 2 years ago

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