Question

The reduction in project time normally results in

• A. Increasing the direct cost and decreasing the indirect cost
• B. Decreasing the direct cost and increasing the indirect cost
• C. Increasing the direct cost and the indirect cost both
• D. Decreasing the direct cost and the indirect cost both

Hint:

When shortening the project timeline, both direct and indirect costs tend to increase due to additional resources and overheads.

Answer 1

The Correct Option is C

Step 1: Understanding Project Time and Costs.
When the project time is reduced, typically more resources are employed to accelerate the work, which results in an increase in both direct costs (labor, materials) and indirect costs (overhead, supervision).
Step 2: Conclusion.
Therefore, reducing the project time generally increases both the direct cost and the indirect cost, making option (3) the correct answer.

Final Answer: \[ \boxed{3. \, \text{Increasing the direct cost and the indirect cost both}} \]