Project Management Professional (PMP) Exam Practice – Question1610

Which term describes those costs in a contract that are associated with two or more projects but are not traceable to either of them individually?


A. Variable
B. Direct
C. Indirect
D. Semivariable

Correct Answer: C

Explanation:

Explanation:
The nature of an indirect cost is such that it is neither possible nor practical to measure how much of the cost is attributable to a single project. These costs are allocated to the project by the performing organization as a cost of doing business.