Question

You are managing a project and need to cut the cost of the project. You decide to transfer workers to another job to cut the project's costs. Costs associated with transferring the workers are an example of project indirect costs.
O True
O False

Answer 1

Answer: False

Explanation:

Indirect costs are costs that are not linked directly to a cost object Administration and security costs are indirect cost as they These are are not related directly to production.

Examples of indirect costs are rent, overhead costs, employees salaries, utilities and general office expenses.

The cost associated with moving the workers is a direct cost because the workers are directly involved in the production process.