indirect costs

Definitions

Accounting

  • plural noun costs which are not directly related to the making of a product, e.g. cleaning, rent or administration

Construction

  • Costs are directly attributable to the completion of an activity. Indirect costs are typically allocated or spread across all activities on a predetermined basis.
  • In construction, all costs that do not become a final part of the installation, but are required for the orderly completion of the installation and may include, but are not limited to, field administration, direct supervision, capital tools, startup costs, contractor's fees, insurance, taxes, etc.
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