What is the primary purpose of applying overhead costs in construction estimating?
Correct Answer
A) To account for indirect costs not attributable to specific work items
Overhead covers indirect costs such as office expenses, insurance, utilities, and administrative costs that cannot be directly attributed to specific construction activities but are necessary for business operations.
Why This Is the Correct Answer
Overhead covers indirect costs such as office expenses, insurance, utilities, and administrative costs that cannot be directly attributed to specific construction activities but are necessary for business operations.
More NASCLA Questions
How long should daily reports and project correspondence typically be retained after project completion?
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?
On an electrical plan, a rectangle with three parallel lines inside typically represents:
In a mechanical drawing, what does 'CFM' typically measure?
In CSI MasterFormat Division 08, which of the following would typically be included?
On a mechanical plan, what does the symbol 'RTU' typically indicate?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
What is the main purpose of a 'flow-down' clause in subcontract agreements?
Next Question
A project requires 2,400 square feet of drywall installation. If the labor productivity rate is 120 SF per 8-hour day per worker, and the crew consists of 3 workers, how many days will the installation take?