10 Facts About Indirect costs

Indirect costs are costs that are not directly accountable to a cost object.

One are the fixed indirect costs which contains activities or costs that are fixed for a particular project or company like transportation of labor to the working site, building temporary roads, etc.

The other are recurring indirect costs which contains activities that repeat for a particular company like maintenance of records or payment of salaries.

Direct Indirect costs are directly attributable to the object and it is financially feasible to do so.

In manufacturing or other non-construction industries the portion of operating Indirect costs that is directly assignable to a specific product or process is a direct cost.

Direct Indirect costs are those for activities or services that benefit specific projects, for example salaries for project staff and materials required for a particular project.

Indirect costs are, but not necessarily, not directly attributable to a cost object.

Indirect costs are typically allocated to a cost object on some basis.

In construction, all costs which are required for completion of the installation, but are not directly attributable to the cost object are indirect, such as overhead.

Indirect costs are those for activities or services that benefit more than one project.