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

Solutions

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 1 year ago

Next > < Previous

Related Solutions

Which of the following is not an example of a direct materials cost? A) tires on...

Which of the following is not an example of a direct materials cost? A) tires on a bicycle B) engine in a car C) shelves on a bookcase D) nails used to manufacture a desk

Which of the following is NOT an example of a cost in a social relationship?

Which of the following is NOT an example of a cost in a social relationship?Multiple Choicethe time spent with a friendthe expense involved in going on a road trip with friendshelping a friend move to his new apartmenthaving friends listen to you talk about what’s going on in your life

Which of the following is not an example of a cost that varies in total as...

Which of the following is not an example of a cost that varies in total as the number of units produced changes? a.Electricity per KWH to operate factory equipment b.Supervisor salary c.Wages of assembly worker d.Direct materials cost Which of the following is true when using the concept of contribution margin in managerial decision making? a.Contribution margin is rarely useful for providing insight into the profit potential of a company. b.The contribution margin ratio is most useful when the increase...

Which of the following is an example of U.S. foreign direct investment and by itself increases...

Which of the following is an example of U.S. foreign direct investment and by itself increases U.S. net capital outflow? A. A Swiss bank buys bonds issued by a U.S. company. B. A French restaurant opens and operates a restaurant in New York. C. A U.S. electronics company opens and operates a new factory in India. D. A U.S. pension fund buys bonds issued by the Japanese government.

21. Which of the following is a direct cost of a specific department in a retail...

21. Which of the following is a direct cost of a specific department in a retail store? A. company president’s salary B. rent on the store C. utilities for the store D. cost of the department’s inventory 22. You have tickets to go to Mexico (Cancun specifically) over spring break. Just this week your best friend informs you that s/he is getting married over spring break and would like you to be in the wedding as...

which of the following is an en example of fixed cost? labor cost associated with the...

which of the following is an en example of fixed cost? labor cost associated with the production of a new product shipping cost associated with the sale of a new product coat of equipment purchased for an assembly line to be used in the production kf a new product assembly costs associated with the production kf a new product

23. Which of the following is not an example of the opportunity cost of going to...

23. Which of the following is not an example of the opportunity cost of going to school? a. The nap a student could have enjoyed if he had not attended class. b. The money a student could have earned by working if he had not gone to college. c. The party a student could have enjoyed if he had not stayed in to study for his exam. d. The money a student spends on rent for his apartment while attending...

Which of the following created by a plant is not an example of a spillover cost?

Which of the following created by a plant is not an example of a spillover cost? (a) pollution of a local river (b) plant accidents affecting the local community (c) mosquito and insect control on the plant grounds (d) congestion of local roads around the plant

Which of the following is an example of an implicit cost in a farm business?

Which of the following is an example of an implicit cost in a farm business? a. Wages paid to workers b. The economic depreciation of capital equipment the farmer owns c. Rent on a building d. The cost of fertilizer suppled to a farmer by his/her vendor

Which of the following is considered to be an example of a side cost or benefit...

Which of the following is considered to be an example of a side cost or benefit for investment analysis? 1 Project Cannibalization 2 Project Synergies 3 Opportunity Costs 1 only 1 and 2 only 2 and 3 only 1,2 and 3 Which of the following statements is true about side projects? 1 Opportunity costs are not considered relevant for cash flow analysis 2 Product cannibalization occurs when a project compromises the value created by another 3 Project synergies are commonly...

Subjects