In the cost breakdown context, which item is typically treated as overhead due to ongoing non-labor operations?

In the cost breakdown context, which item is typically treated as overhead due to ongoing non-labor operations?

• A. Superintendent's annual salary
• B. Labor
• C. Materials
• D. Equipment rentals

Answer: (A)

Overhead costs are those that keep the project running but aren’t tied to a specific hour of labor or unit of material. The superintendent’s salary fits this because it covers ongoing supervision and coordination across the whole job, not a particular piece of work. It’s an ongoing non-labor operation cost that is categorized as overhead (general conditions). Labor and materials are direct costs tied to specific work and purchases, while equipment rentals usually depend on how they’re allocated but aren’t the classic ongoing supervisory overhead.