Letter C would be the best answer among the choices. Administrative expenses are sets of costs needed by a company to administer a business that is not related to the sales of goods and services or constructions. This is required in determining the fixed cost of a business’ new project.
Not all projects need training as they can repurpose the previous training materials used. Some projects might even need to have various training that has different fees. The contractor salaries and vendor fees are under a different branch of the company that is not the job of the project manager. The building lease is an administrative expense as it is fixed and will not contribute to sales or make the company any profit.
Building leases;-building leases would be an example of administrative costs. costs are often categorized
as either direct or indirect. administrative costs, which fall under the indirect costs
category, include costs for normal operation of the business, but are not directly related to
the project. because the facilities are necessary for normal operations, the building leases
would be considered administrative costs.
training, vendor fees, and contractor salaries would all be associated with the project,
and therefore, would not be administrative costs. costs directly related to a project are
considered project costs or direct costs.