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What is indirect costs?

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Question added by محمد الباجوري , Senior ERP Consultant & ERP Project Manager , XERVON GmbH
Date Posted: 2013/06/24
Farhad Ali
by Farhad Ali , Accountant , AL Aaly holding

which can,t be traced per unit

Khaled Abdelrehim ACCA DipIFR CMA
by Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

the cost that cannot be associated with a cost object in an economic and feasable way

Saad Bin Asghar
by Saad Bin Asghar , Accounts and Finance Manager , Eastern Biotech and Life Sciences

the cost which is not directly related in the making of final product.

Noufal Ali
by Noufal Ali , Designer (2D & 3D) , SAUDI FAN INDUSTRIES

Indirect costs are costs that are not directly accountable to a cost object (such as a particular project, facility, function or product).
Indirect costs may be either fixed or variable.
Indirect costs include administration, personnel and security costs.
These are those costs which are not directly related to production.
Some indirect costs may be overhead.
But some overhead costs can be directly attributed to a project and are direct costs.

Bandar AlHadad
by Bandar AlHadad , مختص شؤون مالية , قطاع حكومي

Direct costs are directly attributable to the object.
In construction, the costs of materials, labor, equipment, etc, and all directly involved efforts or expenses for the cost object are direct costs.
In manufacturing or other non-construction industries the portion of operating costs that is directly assignable to a specific product or process is a direct cost.
Direct costs are those for activities or services that benefit specific projects, for example salaries for project staff and materials required for a particular project.
Because these activities are easily traced to projects, their costs are usually charged to projects on an item-by-item basis.

Spend more than one product and are difficult to link or distributed directly to the final product units or are costs incurred in performing a particular activity any spent on productive activity as a whole or marketing activity in general.

Nagarjunna Apps
by Nagarjunna Apps , Senior Advisory Consultant , IBM

Indirect costs are those costs that are not classified as direct.
Examples of indirect costs are : Salaries of administrative and clerical staff providing normal support activities in the department, college or school Office supplies including postage Local telephone calls Memberships - See more at: http://www.uaa.alaska.edu/research/OSP/direct-vs-indirect-costs.cfm#sthash.6vRRoyIE.dpuf

manaf almas
by manaf almas , Auditor , DAR AL NUZUM PUBLIC ACCOUNTANTS

the cost which cannot be identified directly or economicaly for a product

mukkur srinivasan varadhan
by mukkur srinivasan varadhan , Chartered Accountant , Chartered Accountant in practice

Costs not specifically  identifiable or traceable  with some product or cost centre are Indirect costs.This can be allocated to various products or cost centres based on some common factors only.

Mohamed Umar
by Mohamed Umar , General Accountant , Napco National

Indirect costs are costs that are not directly accountable to a cost object (such as a particular project, facility, function or product).
Indirect costs may be either fixed or variable.
Indirect costs include administration, personnel and security costs.
These are those costs which are not directly related to production.
Some indirect costs may be overhead.
But some overhead costs can be directly attributed to a project and are direct costs.

Ervin Gallego
by Ervin Gallego , Accountant , Al Falak Electronic Equipment & Supplies Company

Indirect cost are cost that not directly related to the production.
In construction accounting, indirect cost are office personnel salaries and wages, office utilities billing, insurance, client and consultant fees, office supplies, office staff transportation billing, transportation fees of equipment, customs fees, engineering fees.

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