Monthly salary to employees working
Sharon is the senior business analyst and working with Sam. Sam is the project manager in the project and he is involved in the cost estimate process in project cost management. Sharon and Sam are discussing about various costs in the project. They are discussing about all type of costs in the project which includes opportunity cost, direct cost, indirect cost etc. Monthly salary to employees working in an organization is an example of?
A. Sunk cost.
B. Opportunity cost.
C. Direct cost.
D. Indirect cost.
Answer: Option C is correct.
- Monthly salary to employees working in an organization is an example of direct cost.
- Rent, utility bills – fixed cost
- Wages, cost of material, supplies – variable cost
- Salary for the team, training the team – direct cost
- Taxes - indirect cost