indirect cost


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Indirect Cost

A cost to a business that is not directly related to making a product. For example, market research is an indirect cost because, while it may assist in making decisions about production, it does not affect the production of any one unit. Another common indirect cost is the purchase of office supplies. Indirect costs are necessary to running a business. See also: Direct cost, Overhead.

indirect cost

A cost that is not directly related to the production of a specific good or service but that is indirectly related to a variety of goods or services. For example, the cost of administering a large company is an indirect cost that must be spread over a number of products or services. Also called overhead. Compare direct cost.

indirect cost

see OVERHEADS, COST.
References in periodicals archive ?
Bidder must have a minimum of five (5) years of experience performing indirect cost allocation plans according to the requirement of 2 CFR 200 Subpart E, for governmental agencies or nonprofit corporations that receive grants from the federal government.
Tenders are invited for provision of Indirect Cost Rate and Cost Structure Advisory Services
GAO was directed to review the indirect costs the Agency for Toxic Substances and Disease Registry (ATSDR) paid the Centers for Disease Control and Prevention (CDC).
While the tooth-to-tail ratio is a concept that has become popularized within DoD over the past decade or two, it actually is a representation of a larger popular view that holds that organizational cost effectiveness can be improved by focusing on the reduction of indirect costs.
Our discussions with OPM disclosed that the above statement is not intended to prohibit the reimbursement of an allocable share of contractor indirect costs, including the types of costs specifically listed, provided such allocation is consistent with the contractor's established cost accounting practices.
This shows alternative cost accumulation systems (column 2), the sophistication of the treatment of indirect costs (column 3) and possible explanatory factors for these (column 1).
The Cost Allocation Plan must be compliant with OMB Circular A-87 and must identify all material indirect costs for recovery from federal and state grantor agencies.
Additionally, federal research activity and indirect cost payments inherently are vulnerable to fluctuation over the 30-year term of the bonds.
1 Work with selected County staff to define the purpose, uses and goals of an indirect cost allocation plan.
The Ohio Development Services Agency (Development), Office of Budget & Finance is seeking proposals from qualified vendors to develop an indirect cost allocation plan.
The direct and indirect cost projections generated by the QDC are based on plans' HEDIS scores.
The County requires the development of a comprehensive annual central services cost allocations plans and indirect cost rate proposals, in accordance with Federal Office of Management and Budget (OBM) Circular A-87 and the ASMB C-10 (formerly OASC-10) guidelines, to recover Federal and State Funds for Somerset County central services that support grants, contracts, cooperative agreements and health care facilities.