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 ?
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 ...
3) Under the new activity-based costing (ABC) system, compute the indirect cost allocation rates for each of the three activities:
Firstly, the analysis of the cost of lost productivity associated with allergic diseases shows that the indirect cost, in terms of lost productivity, is higher with caregiver absenteeism than with work days lost due to one's own illness.
In addition, direct nonmedical costs included those costs associated with transportation and included travel costs to and from medical facilities (e.g., outpatient healthcare, emergency care, or hospitalization), whereas indirect costs were those costs associated with lost productivity or lost work time for caregivers as a result of caring for the child suffering with norovirus illness (Gold, Siegel, Russell, & Weinstein, 1996).
Rather, my argument is that the various critiques of indirect cost reimbursements have failed to provide any systematic evidence of abuse and waste on a scale that would justify the two-thirds reduction in cost reimbursements entailed by the adoption of the cap.
In addition to the direct costs of hospitalization, emergency care, rehabilitation and cost of illness, indirect costs related to the loss of productivity and long-term care further increase the overall cost of stroke.
Our literature search reveals that hospitality industry managers, and more specifically mangers in the hotel sector, prefer using traditional CA system when dividing various costs (i.e., direct and indirect costs) (Kostakis et al., 2011; Pellinen, 2003).
Indirect cost rates are particularly relevant with respect to official federal policy for recovering overhead (F&A) costs incurred by universities while conducting government-sponsored research, and are the topic of much debate between universities and research-sponsoring agencies.
Direct costs sum up to 2750 [euro] (72% of total costs, SD 5852) and indirect costs to 1063 [euro] (28% of total costs, SD 4067).
Indirect cost of care of low back pain Annual cost (naira) n Mean SD Transportation Respondent 40 17772 13526.12 Accompanying person 11 12938.18 9331.78 Meals Outside Home 13 9738.46 4850.69 Paid Helps 3 34000 19287.3 Total 24495 16837.13 Hours lost per 10.25 6.75 hospital visit Table 4.
Piece and small batch production is characterized by high share of indirect cost within production total cost.