Which of the following items is a direct cost on a job site?

• A. Field supervisor wages
• B. Headquarters rent
• C. Marketing campaigns
• D. Legal fees

Answer: (A)

Direct costs are those expenses that can be traced directly to a specific job. The on-site field supervisor’s wages fit this because their time and effort are spent specifically to manage and complete that particular project, so the cost can be charged straight to that job.

Headquarters rent is an overhead expense that supports many jobs and isn’t tied to one project. Marketing campaigns are selling costs, not production costs tied to a job. Legal fees are general business costs and, unless clearly allocated to a specific job, are also considered indirect.