What type of costs are associated with a specific research project?

• A. Indirect costs
• B. Fixed costs
• C. Direct costs
• D. Variable costs

Answer: (C)

This question is about identifying the costs that can be traced directly to a single research project. Direct costs are the ones that are specifically attributable to that project, making it easy to justify and itemize them on the project’s budget. Examples include salaries of personnel working on the project, materials and supplies used for the project, equipment purchased for that project, and subcontracted services paid for by the project. These costs are recorded against the project because they can be linked to its activities.

Indirect costs, in contrast, are overhead costs like facilities, utilities, and general administrative support that support multiple projects and are allocated to them rather than charged to a single one. The terms fixed and variable describe how costs behave with activity level, not whether they belong to a particular project.