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: Time and Cost Analysis.
Shortening project duration usually requires more resources, leading to higher direct (labor, materials) and indirect (overhead, supervision) costs.
Step 2: Summary.
Consequently, reducing project time typically increases both direct and indirect costs, making option (3) the correct choice.

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