Which of the following is an example of a direct expense related to grant-funded projects?

The choice identifying equipment purchases for the project as an example of a direct expense is accurate because direct expenses are those costs that can be directly attributed to a specific project or program. In the context of grant-funded projects, direct expenses are essential for completing the project objectives, and equipment necessary for the project plays a crucial role in achieving the desired outcomes outlined in the grant proposal.

For instance, if a project requires a specific type of equipment to conduct research or deliver services, the cost of that equipment is considered a direct expense because it is vital for the project's implementation. Unlike indirect expenses, which support the overall operation but are not directly linked to a specific project, this type of expense can be easily traced to the grant-funded initiative, thereby justifying it as part of the budget for the project.

Other options provided do not qualify as direct expenses because they either pertain to general operational costs not limited to the project itself or are not directly tied to its execution. For example, administrative salaries may cover roles unrelated to the project or represent an overhead expense, utility costs may also not be specific to the project but rather support the overall facility, and general office supplies may serve multiple projects or functions without being dedicated to a single grant initiative.