Virginia Contractor General Practice Test

Which of the following is NOT covered under Project Overhead?

1. Marketing expenses

2. Supervisor salaries

3. Utilities costs

4. Office supplies

The correct answer is: Marketing expenses

Project Overhead typically encompasses costs that are necessary to manage and execute a project but do not directly contribute to the construction or production of the project itself. This can include expenses related to the management of the project, such as supervisor salaries, utilities costs, and office supplies, as these are integral to maintaining the project site or managing the operations. Marketing expenses, however, are generally not considered part of Project Overhead. While important for business development and securing future contracts, marketing does not pertain to the specific costs incurred while executing a particular project. Instead, it is categorized under general business expenses or administrative overhead. Understanding the distinction between project-specific costs and those related to broader business operations is crucial for effective project budgeting and financial management in contracting.