CGFM Exam 2 - Section 1, Chapter 2
Questions & Answers (Grade A+)
indirect costs -
correct answer ✅resources that are jointly or commonly used for
two or more objectives or outputs
indirect cost examples -
correct answer ✅• general administrative services
• rent
• building space
• utilities
direct costs -
correct answer ✅are costs that can be specifically identified with
a single objective or output.
direct cost examples -
correct answer ✅• Salaries and benefits
• Materials and supplies
• Travel costs
"Other" Indirect Costs -
correct answer ✅another category of indirect costs associated
, CGFM Exam 2 - Section 1, Chapter 2
Questions & Answers (Grade A+)
with goods and services provided by other segments of the
organization, or even outside the organization. These costs are not
usually controllable by the management of the segment that
produces the outputs
"Other" indirect costs examples -
correct answer ✅• human resources
• payroll processing
• centralized procurement
• central data processing
• Accounting and fleet maintenance
Facilities (Indirect Costs) -
correct answer ✅defined as depreciation on buildings, equipment
and capital improvement, interest on debt associated with certain
buildings, equipment and capital improvements, and operations
and maintenance expenses
Administration (Indirect Costs) -
correct answer ✅defined as general administration and general
expenses such as the director's office, accounting, personnel and all
other types of expenditures not listed specifically under one of the
Questions & Answers (Grade A+)
indirect costs -
correct answer ✅resources that are jointly or commonly used for
two or more objectives or outputs
indirect cost examples -
correct answer ✅• general administrative services
• rent
• building space
• utilities
direct costs -
correct answer ✅are costs that can be specifically identified with
a single objective or output.
direct cost examples -
correct answer ✅• Salaries and benefits
• Materials and supplies
• Travel costs
"Other" Indirect Costs -
correct answer ✅another category of indirect costs associated
, CGFM Exam 2 - Section 1, Chapter 2
Questions & Answers (Grade A+)
with goods and services provided by other segments of the
organization, or even outside the organization. These costs are not
usually controllable by the management of the segment that
produces the outputs
"Other" indirect costs examples -
correct answer ✅• human resources
• payroll processing
• centralized procurement
• central data processing
• Accounting and fleet maintenance
Facilities (Indirect Costs) -
correct answer ✅defined as depreciation on buildings, equipment
and capital improvement, interest on debt associated with certain
buildings, equipment and capital improvements, and operations
and maintenance expenses
Administration (Indirect Costs) -
correct answer ✅defined as general administration and general
expenses such as the director's office, accounting, personnel and all
other types of expenditures not listed specifically under one of the
