Which of the following is NOT an appropriate S&A charge?

• A. Construction quality assurance
• B. Construction phase fiscal closeout
• C. Overhead distributions such as G&A
• D. Insurance premiums for the project

Answer: (D)

S&A charges are indirect costs that support the business and multiple projects, not costs tied to a single project. Insurance premiums for the project are a risk-related expense specific to that project and are typically treated as direct project costs (or listed under a project insurance line item) rather than as selling and administrative overhead. That’s why project insurance doesn’t fit as an S&A charge, while items like overhead distributions (G&A) and certain project administration tasks (such as a construction phase fiscal closeout or QA activities that support the project) are commonly handled as overhead or administrative costs allocated to the project.