Question

The Components of cost of project

Answer 1

Answer:

Components of cost of the project include both direct and indirect expenses.

Explanation:

1) Direct expenses include the expenses towards procurement of direct raw materials, direct labour and direct overheads. Direct expenses/ cost is also known as prime cost.

2) Indirect expenses include the expenses which are ancillary to the direct expenses. This includes Employee cost, Administrative cost, Finance cost, Selling and distribution cost.