indirect cost

  

Definition

An expense (such as for advertising, computing, maintenance, security, supervision) incurred in joint usage and, therefore, difficult to assign to or identify with a specific cost object or cost center (department, function, program). Indirect costs are usually constant for a wide range of output, and are grouped under fixed costs.

Use indirect cost in a sentence

  • You need to know if there will be any indirect cost before you ever make a major purchase for your company.

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  • I did not like the idea of an indirect cost because I wanted everything to be paid upfront and di not like anything extra.

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  • Some products will have a high indirect cost like storage or maintenance that you must factor in to any purchase.

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