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Indirect costs are not directly related to the products or services of a project. Indirect costs do not become the direct part of the product or services.
What are indirect costs?
Costs that are not directly attributable to a cost object are known as indirect costs (such as a particular project, facility, function or product). Indirect expenses can be be constant or variable, just as direct costs. Administration, staff, and security expenditures are examples of indirect costs. These are the expenses that aren't directly connected to manufacturing. Some overhead expenses may be indirect, while some overhead expenses can be immediately linked to a project and are therefore direct costs.
Indirect costs come in two different forms. One category is the fixed indirect expenses, which are constant for a given project or business and include things like worker transportation to the job site and the construction of makeshift roadways.
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