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- DictionaryIndirect costs
noun
- 1. costs that are derived from overhead charges or subsidiary work: "a common mistake is to underestimate indirect costs"
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Dec 7, 2023 · What are Indirect Costs? Indirect costs are costs used by multiple activities, and which cannot therefore be assigned to specific cost objects. Examples of cost objects are products, services, geographical regions, distribution channels, and customers. Instead, indirect costs are needed to operate the business as a whole.
Oct 23, 2023 · What are indirect costs? Indirect costs extend beyond the expenses you incur when creating a product; they include the costs involved with maintaining and running a company. These...
Indirect costs are costs that are not directly related to a specific cost object like a function, product or department. They are costs that are needed for the sake of the company’s operations and health.
Indirect costs are those expenses that are incurred in common for different projects, products, or business activities and cannot be easily divided for individual projects, products, or activities. We also could say all the costs that could not be allocated to direct costs are indirect costs.
Feb 3, 2023 · Indirect costs are costs that don't relate to a specific product or service you're selling to customers. Instead, they mainly address operational needs, such as overhead, maintenance and administrative costs.
An indirect cost is any cost not directly identified with a single, final cost objective, but identified with two or more final cost objectives or an intermediate cost objective. It is not subject to treatment as a direct cost.
Apr 11, 2024 · Indirect cost is any cost that the firms cannot count for a particular business activity, project, service, or objective. Instead, this expense incurred helps achieve more than one business objective at a time, and hence it cannot be directly linked to any one particular cost object.
Sep 18, 2022 · What are Direct vs. Indirect Costs? Direct Costs can be traced back to its specific product offerings, whereas Indirect Costs cannot as these types of costs are not directly tied to production.
Definition: Indirect costs are expenses that cannot be traced back to a single cost object or cost source. During the manufacturing process, items like products, departments, and customers create costs. These are considered cost objects because the original manufacturing costs stem from them.
Dec 17, 2020 · Indirect costs represent the expenses of doing business that are not readily identified with a particular grant, contract, project function or activity, but are necessary for the general operation of the organization and the conduct of activities it performs.
