12-The project manager for a large project being developed in northern Ontario recognizes that it will be necessary for her to maintain a close presence at the construction site during its development and has negotiated the use of a building for her team st the construction project. The cost of the building must be factored into the project cost and will increase with use; that is, the cost of heating and other utilities is subject to change depending upon weather and team use. What type of cost would this building represent? A. Variable direct B. Indirect C. Nonrecurring D. None of the above

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter14: Quality And Environmental Cost Management
Section: Chapter Questions
Problem 22E
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12-The project manager for a large project being developed in northern Ontario recognizes that it will be necessary for her to
maintain a close presence at the construction site during its development and has negotiated the use of a building for her team near
the construction project. The cost of the building must be factored into the project cost and will increase with use: that is, the cost of
heating and other utilities is subject to change depending upon weather and team use. What type of cost would this building
represent?
A. Variable direct
B. Indirect
C. Nonrecurring
D. None of the above
Transcribed Image Text:12-The project manager for a large project being developed in northern Ontario recognizes that it will be necessary for her to maintain a close presence at the construction site during its development and has negotiated the use of a building for her team near the construction project. The cost of the building must be factored into the project cost and will increase with use: that is, the cost of heating and other utilities is subject to change depending upon weather and team use. What type of cost would this building represent? A. Variable direct B. Indirect C. Nonrecurring D. None of the above
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