Which is an example of indirect costs?
A) Project team members' salaries
B) Hardware purchases used only for new systems
C) Consumable supplies costs
D) Insurance expenses

Question

Quizplus · Accepted Answer

Indirect costs are expenses that are not directly related to the production or delivery of goods or services, but still necessary for the business to operate. Insurance expenses would fall under this category as they are necessary to protect the business from unexpected events, but do not directly contribute to the production of goods or services. A, B, and C are all examples of direct costs as they are directly related to the production or delivery of goods or services.

Which Is an Example of Indirect Costs