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Business Definition 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.

See also direct 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.

See also direct labor , factory overhead , direct material
indirect cost
See also fixed cost
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Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright c 2000, 1994, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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