What are direct costs primarily used for in a project?

Direct costs are specifically expenses that can be directly attributed to a particular project, typically encompassing the labor and materials required for that project. These costs are essential for understanding the financial requirements of completing the project, as they represent the actual expenditures that are necessary for executing the work involved. For instance, if a fire alarm system is being installed, the direct costs would include the costs of the equipment, such as alarm panels and sensors, as well as the labor costs associated with the technicians and installers working on the project.

In contrast, the other options refer to indirect costs or costs not confined to the specific project. Office expenses and insurance costs are examples of overhead or administrative expenses, which serve broader business operations rather than directly facilitating project completion. Marketing expenses, similarly, pertain to promoting the business rather than to the execution of the project itself. Therefore, the focus on labor and material completion accurately defines what constitutes direct costs in a project context.