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An indirect cost is business expenses that are not directly related to a particular product or function within the general operation. Costs of this type tend to have an impact on the overall operation of the business. Marking it very difficult to charge the costs to a specific department or associate them with one function.
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What is the process of assigning indirect costs?
Cost allocation...
What are the costs of business known as?
if you are talking about the costs associated with running a business, they are called "operating costs" there are also the costs that are required to get a business running, they are called "startup costs"
What is the distinction between product costs and period costs?
product costs are the costs that are assiciated with the whole project you are working on..from start to finnish. period costs are those costs that you need for a certain time fraime within the project itself.
Examples of non relevant cost?
Examples are Sunk Costs, Fixed costs and Allocated Costs.
What is overhead charge?
Quote: "A common practice is to calculate an overhead charge as a percentage of the direct costs of providing the services under the contract." source: http://www.unbc.ca/assets/policy/research/indirect_costs_and_overhead_charges_for_research_and_for_instructional_services_surpluses_2.pdf explaining that overhead charge is describing the indirect cost that a contract causes to the delivering institution.
Why distinguish direct costs from indirect costs?
It is done so to keep control on costs as direct costs are controllable while indirect costs are not.
Why do managers consider direct costs to be more accurate then indirect costs?
Answer this question...why do managers cosider direct costs to be more accurate than indirect costs?
Is direct cost same to indirect cost?
No direct costs and indirect costs are not same and opposite of each other.
What are the stages of accounting for costs?
direct costs,indirect costs,sunk costs, Activity based costing.
What are Both traced direct costs and allocated indirect costs?
cost assignments
In budgeting what is on the list of direct and list of indirect expenses?
Indirect costs are costs that are not directly accountable to a cost object (such as a particular function or product). Indirect costs may be either fixed or variable. Indirect costs include taxes, administration, personnel and security costs, and are also known as overhead.Costs usually charged directlyProject staffConsultantsProject suppliesPublicationsTravelTrainingCosts usually allocated indirectlyUtilitiesRentAudit and legalAdministrative staffEquipment rental
Is indirect material fixed costs or variable costs?
Indirect material is normal fixed cost that is why it is allocated using some kind of ratio or formula.
What are the indirect costs of tooth decay?
Indirect costs of tooth decay include things like lost productivity at work and school. Absenteeism due to dental appointments or severe pain is an indirect cost.
What are the indirect fixed costs of hospital?
All fixed operating expenses from overhead (indirect) departments
What is the process of assigning indirect costs?
Cost allocation...
What are the costs and benefits of indirect addressing?
Feces and smells.
Direct costs and indirect costs?
Direct costs- can be conveniently and economically traced to a cost object Indirect costs- cannot be conveniently or economically traced to a cost object. Instead of being traced, these costs are allocated to a cost object in a rational and systematic manner
