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Indirect cost

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Definitions Edit

An indirect cost (also called overhead cost or burden) is a

(1) Cost not directly identified with one final cost objective. May be identified with two or more final or one or more intermediate cost objectives. (2) Cost allocated to the project by the performing organization as a cost of doing business.[1]

Indirect costs are

costs that, because of their incurrence for common or joint objectives, are not subject to treatment as direct costs. They are not directly identified with a single final cost objective, but rather with two or more final cost objectives or with at least one intermediate cost objective.[2]

Overview Edit

Indirect costs include support costs for continued operations. There are two categories of indirect costs — overhead, and general and administrative costs (G&A).[3]

References Edit

  1. California Office of Systems Integration, Definitions (full-text).
  2. Defense Acquisition University, ACQuipedia, Indirect Costs (full-text).
  3. Id.

External links Edit

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