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 ?
In any event, if philanthropy in fact does not pay adequate indirect cost rates for the research they support, that only enhances the importance of the federal government's role in supporting the infrastructure of research.
firm%s allowable indirect costs, either 1 directly through a cost reimbursement contract
9) the direct and indirect costs of low back pain, are estimated at $60 billion annually in the United States.
However, CDC has re-estimated indirect costs by enhancing the statistical methods.
Counsel for Air Canada argued that indirect costs, which are the costs of resources that are used by two or more cost objects (in this case flights), were not avoidable "If a cost is incurred in order to provide multiple products .
C) What proportion of the total indirect cost is assigned to: (i) the retail customer line, and (ii) the business customer line?
Each dollar of indirect cost recovered through a grant is a dollar that can be returned to your reserves for other uses - and a dollar that does not have to be raised through additional debt or equity sales.
Request for qualifications: preparation of the indirect cost proposal.
To provide information on nonprofits' indirect cost reimbursement, especially when funding flows through entities such as state and local governments, GAO (Government Accountability Office) was asked to review, for selected grants and nonprofits, (1) how indirect cost terminology and classification vary, (2) how indirect costs are reimbursed, and (3) if gaps occur between indirect costs incurred and reimbursed, steps taken to bridge gaps.