Indirect Cost

Indirect Cost

Indirect Cost means:
a manufacturing cost that cannot be easily seen in the product. Electricity, hazard insurance on a factory building, and real estate taxes are indirect costs.

U.S. and other Developed Countries International Tax Meaning

Costs that cannot be identified in relation to a particular activity but that, nevertheless, are related to the direct costs (e.g. overhead expenses, costs of supporting departments, and a proper share of research and development (R&D) costs).


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