When calculating overhead costs for bidding purposes in California, which of the following items is considered an allowable indirect cost that can be allocated across multiple projects?
Correct Answer
A) General liability insurance premiums
General liability insurance premiums are indirect overhead costs that benefit the entire business operation and can be allocated across multiple projects. Direct costs like job-specific materials, permits, and subcontractor payments are charged directly to individual projects rather than included in overhead calculations for bidding purposes.
Why This Is the Correct Answer
General liability insurance premiums are indirect overhead costs that benefit the entire business operation and can be allocated across multiple projects. Direct costs like job-specific materials, permits, and subcontractor payments are charged directly to individual projects rather than included in overhead calculations for bidding purposes.
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