Certified Human Resource Professional (CHRP) Practice Exam

Which of the following is a direct cost of a training program?

1. Refreshments provided during the training

2. Advertising the training

3. Clerical support for the training

4. Trainer preparation time

The correct answer is: Refreshments provided during the training

The correct answer, which identifies refreshments provided during the training as a direct cost, highlights a key understanding of expense categorization in training programs. Direct costs are those that can be directly attributed to a specific training activity or program; they are expenses that occur specifically because of the training session itself. In this context, refreshments are a straightforward example, as they are tangible expenditures directly related to the training participants' experience during the session. This means they can be clearly identified and allocated to the training program's budget. In contrast, options like advertising the training, clerical support, and trainer preparation time, while important to the success and management of the training, are considered indirect costs. Advertising, for example, contributes to marketing the training but is not specifically incurred due to a particular training session. Similarly, clerical support is a broader cost associated with administrative tasks and not directly tied to the training. Trainer preparation time, while essential for the effectiveness of the training, is classified as an indirect cost since it involves activities that occur before the actual training delivery and does not directly reflect expenditure related to a specific training event. Understanding these distinctions is crucial in cost analysis and budgeting for training programs.