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What are Indirect Costs
Indirect costs are those costs that cannot be assigned (cannot be monitored) to a specific cost object.

Indirect costs are those costs that cannot be assigned (cannot be monitored) to a specific cost object.

Indirect costs in practice: Indirect costs are also sometimes referred to as overhead costs. Since it cannot be assigned to cost objects, they are dissolved (in other words cost objects are burdened by them) in a relation that the organization determines as the most appropriate (e.g. according to the number of employees, square meters, time spent, etc.) Indirect costs may be fixed or variable.

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Last update: 21.07.2016

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