Temporary storage facilities, dumpsters, and utilities are considered _________ overhead.

Study for the Louisiana Contractor Business and Law Exam. Delve into flashcards and multiple choice questions, with hints and explanations for each. Prepare confidently for success!

Temporary storage facilities, dumpsters, and utilities are categorized as project overhead because they are costs directly associated with the specific construction project. Project overhead encompasses expenses that are necessary to complete a particular job but do not fall under labor or materials. These items are essential for the execution of the project, providing the necessary infrastructure and support.

Examples of project overhead include costs for maintaining temporary on-site facilities, waste management through dumpsters, and utilities like electricity and water, which are required for the operation of construction activities. These expenditures can vary from project to project, reflecting the unique requirements of each task.

In contrast, administrative overhead would pertain to costs related to the general operation of the business that are not directly linked to any specific project, while fixed overhead refers to ongoing expenses that do not change with the level of production. General overhead may cover broader business expenses but does not specifically focus on the direct costs tied to the execution of a project.

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