Definitions[]
An indirect cost (also called overhead cost or burden) is a
| “ | (1) Cost not directly identified with one final cost objective. May be identified with two or more final or one or more intermediate cost objectives. (2) Cost allocated to the project by the performing organization as a cost of doing business.[1] | ” |
Indirect costs are
| “ | costs that, because of their incurrence for common or joint objectives, are not subject to treatment as direct costs. They are not directly identified with a single final cost objective, but rather with two or more final cost objectives or with at least one intermediate cost objective.[2] | ” |
Overview[]
Indirect costs include support costs for continued operations. There are two categories of indirect costs — overhead, and general and administrative costs (G&A).[3]
References[]
- ↑ California Office of Systems Integration, Definitions (full-text).
- ↑ Defense Acquisition University, ACQuipedia, Indirect Costs (full-text).
- ↑ Id.
External links[]
- FAR 31.203 Indirect Costs
- FAR Subpart 42.7 Indirect Cost Rates