When estimating overhead costs for a California construction project, which expense must be classified as direct overhead rather than indirect overhead according to standard California accounting practices?
Correct Answer
C) Project superintendent salary
Project superintendent salary is direct overhead because it's directly attributable to a specific project. General office expenses, corporate insurance, and professional fees are indirect overhead costs that support overall business operations rather than specific projects, following California construction accounting standards.
Why This Is the Correct Answer
Project superintendent salary is direct overhead because it's directly attributable to a specific project. General office expenses, corporate insurance, and professional fees are indirect overhead costs that support overall business operations rather than specific projects, following California construction accounting standards.
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