The Salary of the Project Manager Would Be an Example

question 27

Multiple Choice

The salary of the project manager would be an example of what type of cost found in a project?

• A) Labor
• B) Direct
• C) Direct project overhead
• D) General and administrative overhead
• E) Salary

---

Definitions:

Indirect Method

An approach used in cash flow statements where net income is adjusted for changes in non-cash working capital and other items to arrive at net cash flow from operating activities.

Fixed Assets

Fixed assets are long-term tangible assets that a company owns and uses in its operations to generate income, such as buildings, machinery, and equipment.

Percentage-Of-Completion Method

An accounting method used to recognize revenues and expenses of long-term projects proportionate to the work completed during the period.

Contract Costs

Expenses directly related to securing and executing a contract, including labor, materials, and overheads.