indirect costs

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Implicit Cost

The opportunity cost of an activity. Implicit costs are what a company or individual could have earned had a different decision been made. For example, suppose an independent consultant has two clients and she spends some time working on the first client's project. The implicit costs are what the consultant would have made had she worked on the second client's project instead. Implicit costs contrast with explicit costs, which are what someone actually spends on an activity. It is also called an indirect cost.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

indirect costs

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

indirect costs

Costs of construction not directly related to the sticks and bricks. Examples include

• Real estate taxes
• Administrative costs
• Professional fees
• Insurance
• Lease-up expenses

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The indirect costs of a disease are related to lost production as a result of the disease, disability or premature death.
The indirect costs were estimated by calculating the average gross weekly wages by the number of lost work days or hours due to outpatient visits, emergency care, or hospitalizations for a sick child (Constenla et al., 2008; U.S.
For more than six decades, the federal government has been reimbursing universities for indirect costs alongside direct costs.
In our study, direct costs were slightly greater than indirect costs. Currently, the retirement age is 65 in Turkey; estimated indirect costs were low since most of our study population were over the age of 65 years.
The resistance to cost measurement may reveal itself through departments or services that do not have to measure the indirect costs for service provision.
Due to the non-allocation of indirect costs to products, services and or departments, the USALI system may make it difficult for managers to establish a realistic selling price.
2013-231, the Fifth Circuit affirmed the Tax Court's decision that a custom homebuilder was a producer subject to the UNICAP rules and was required to capitalize officers' compensation and other costs as indirect costs incurred related to production activities.
The adjustments were made prior to allocating indirect costs.
The excess of indirect costs due to depression in men over women might be explained by the generally higher full-time employment rate in men than in women in Germany which was also observed in our study [35].
Wages include both direct, which behaviour is similar to specific costs, and indirect costs. Thus, it is interesting to analyze wages separately from other indirect costs, as well as different components of indirect costs.
According to the Defense Acquisition University's ACQuipedia (, indirect costs include support costs for continued operations.
(10) According to Shekelle et al., (9) the direct and indirect costs of low back pain, are estimated at $60 billion annually in the United States.