indirect cost

Dictionary of Accounting Terms for: indirect cost
indirect cost

expense that is difficult to trace directly to a specific costing object; also called common cost. National advertising that benefits more than one product and sales territory is an example of an indirect cost. Fixed factory overhead is another example.

Dictionary of Business Terms for: indirect cost
indirect cost

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

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