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Indirect Costs

Costs not directly attributable to a specific contract.

Definition

Indirect Costs Costs not directly attributable to a specific contract.

Definition

Indirect costs are expenses that cannot be directly attributed to a specific contract, such as rent, utilities, administrative salaries, and general business expenses. They're allocated across contracts using rates (overhead, G&A). Understanding indirect costs is essential for government contract pricing.

Related Terms

  • Direct Costs

    Costs specifically identifiable to a particular contract.

  • G&A

    General and Administrative expenses allocated across all contracts.

  • Overhead

    Indirect costs related to production or service delivery.

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