Which best describes the difference between general and job overhead costs?
a. General overhead costs that are incurred regardless of whether a project is being executed. These are the costs associated with operating the construction company. Conversely, job overhead is the administrative costs directly associated with the execution of a specific project.
b. General overhead costs that are incurred after a project is being executed, job overhead is the administrative costs directly associated with the execution of a specific project. These are the costs associated with operating the construction company.
c. General overhead costs that are incurred regardless of whether a project is being executed. These are the costs associated with operating the owner's new facility. Conversely, job overhead is the administrative costs directly associated with the execution of a specific project.
d. None of these.

Question

Which best describes the difference between general and job overhead costs?
a. General overhead costs that are incurred regardless of whether a project is being executed. These are the costs associated with operating the construction company. Conversely, job overhead is the administrative costs directly associated with the execution of a specific project.
b. General overhead costs that are incurred after a project is being executed, job overhead is the administrative costs directly associated with the execution of a specific project. These are the costs associated with operating the construction company.
c. General overhead costs that are incurred regardless of whether a project is being executed. These are the costs associated with operating the owner's new facility. Conversely, job overhead is the administrative costs directly associated with the execution of a specific project.
d. None of these.

Xiaotian · Accepted Answer

a. General overhead costs that are incurred regardless of whether a project is being executed. These are the costs associated with operating the construction company. Conversely, job overhead is the administrative costs directly associated with the execution of a specific project.
General overhead costs are needed irrespective of whether a job is taking place or not, an example is rent. Whereas job overhead costs are overhead costs that are directly related to that specific job.

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