.Sub contract cost is always to be treated as ……………….to the contract.
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The answer is indirect cost:
Explanation:
Indirect cost
- The tracking of costs linked with a specific contract with a customer is known as contract costing.
- For example, a company submits a bid for a huge construction project with a potential customer,
- and the two parties agree in a contract to reimburse the company in a specific way.
- Rate of indirect cost.
- Overhead expenses (for example, rent and utilities) and general and administrative expenses
- (for example, officers' salaries, accounting department costs, and personnel department costs) are examples of indirect costs.
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