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  • indirect cost

    Costs that are not readily subject to treatment as a direct cost. Indirect costs are associated with two or more cost objectives, but not directly identifiable to a single contract. For example, indirect overhead costs support a particular function of the company such as factory maintenance, and General and Administrative Costs are indirect costs related to the general management and administration of the business unit as a whole. Each contract has both direct and indirect costs allocated to it.

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