INDIRECT COST Definition

Bookmark and Share

INDIRECT COST is that portion of cost that is indirectly expended in providing a product or service for sale (cannot be traced to a given cost object in an economically feasible manner) and is included in the calculation of COST OF GOODS SOLD, e.g. rent, utilities, equipment maintenance, etc. Opposite of direct cost.

Learn new Accounting Terms

OVERHAUL is to rebuild, make repairs or adjustments to, e.g. an overhaul expense would be the expenditures incurred in making the subject item(s) acceptable once again.

MONETARY COMPENSATORY AMOUNTS (MCA), in the European Community, is a complex system of subsidies and levies with the intent of smoothing currency-related distortions in EC cross border farm trade.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.