Which of the following is an example of what S&A charges could include?

• A. Construction quality assurance
• B. Lease of office space
• C. Marketing campaigns
• D. Legal settlements

Answer: (A)

Selling and administrative charges cover overhead activities that support project delivery without being direct construction work. Construction quality assurance fits this idea because it’s an overhead function that ensures standards and safety across the project, rather than contributing to the actual building tasks. It’s the kind of administrative oversight that gets allocated to projects as part of S&A costs, rather than being a direct labor or material cost.

In contrast, other items tend to be classified differently—for example, leasing office space is primarily a facilities/occupancy cost, marketing campaigns are selling expenses, and legal settlements are separate legal or extraordinary costs. The key point is that QA represents the kind of general administrative activity that supports execution and is commonly included in S&A overhead.