Which of the following would not be considered a direct cost?

In property management, direct costs are expenses that can be directly attributed to the operation of a specific property or project. For instance, employee salaries, building maintenance, and utility bills are all costs that are incurred specifically for the management and upkeep of a property and can easily be associated with its performance and operational needs.

Property depreciation, on the other hand, represents a decrease in the value of the property over time and is considered an indirect cost. It reflects a non-cash expense related to the wear and tear on a physical asset rather than an immediate cash outflow or operational expenditure necessary for property management. Therefore, property depreciation does not fit the definition of a direct cost in the context of property operations.

Understanding this distinction is essential for accurately managing budgets and financial reports in the field of property management. While depreciation is important for accounting purposes, it does not directly impact day-to-day operational expenses in the same way that salaries, maintenance, and utilities do.