Costs That Are Not Directly Related to a Specific Project

question 20

Multiple Choice

Costs that are not directly related to a specific project, such as advertising, accounting, and senior management's salary, are classified as _____________ costs.

• A) general and administrative overhead
• B) direct
• C) direct project overhead
• D) fixed
• E) coordination

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Definitions:

Working Capital

The variance between a firm's immediate assets and its short-term obligations.

Accumulated Depreciation

The total depreciation of an asset over its life up to a specific point in time, reflecting how much of its value has been used up.

Accounts Payable

Accounts payable represent a company's obligation to pay off a short-term debt to its creditors or suppliers.

Accounts Receivable

The funds that customers owe to a business for products or services already provided but not yet compensated for.