On an income statement, which section would show the cost of materials, labor, and subcontractors directly related to construction projects?
Correct Answer
B) Cost of goods sold
Cost of goods sold (or cost of revenues) includes direct costs like materials, labor, and subcontractors that are directly attributable to generating revenue.
Why This Is the Correct Answer
Cost of goods sold (or cost of revenues) includes direct costs like materials, labor, and subcontractors that are directly attributable to generating revenue.
More NASCLA Questions
Which AIA document contains the general conditions that govern the rights and responsibilities of all parties in a construction contract?
A construction company has direct labor costs of $85,000, direct materials of $120,000, and overhead costs of $45,000 for a project. What is the total job cost?
What is the primary purpose of job cost accounting in construction?
A construction company has current assets of $350,000 and current liabilities of $280,000. What is the company's working capital?
In CSI MasterFormat, which division covers earthwork and site preparation?
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In CSI MasterFormat Division 08, which of the following would typically be included?
On a mechanical plan, what does the symbol 'RTU' typically indicate?
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A general contractor's balance sheet shows total assets of $850,000, current liabilities of $320,000, and long-term debt of $180,000. What is the company's equity?
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