Which type of costs are directly attributable to completing project work?

Direct costs are expenses that can be traced directly to a specific project or activity, making them a key consideration in project management. These costs include items such as salaries for project team members, materials necessary for the project, and any other expenses directly linked to the work being done. Understanding and accurately budgeting for direct costs are crucial for project success, as they provide a clear picture of the resources required to complete the project efficiently.

In contrast to direct costs, general and administrative costs encompass expenses that are not directly tied to a specific project, like the salaries of support staff or utilities that benefit the entire organization. Indirect costs are similar in that they cannot be tied directly to a single project but affect multiple projects. Contingency costs are set aside to address potential unforeseen expenses that may arise during a project. By focusing on direct costs, project managers can ensure they allocate resources correctly and maintain control over the project's financial aspects.