Indirect costs are not accountable to a particular object, event, or activity directly. They may be variable or fixed and include personnel, security, and administration costs. They are frequently added to overhead funds and then allotted to various activities, based on an allocation process that has a perceived or actual association between the activity and indirect cost. Indirect costs make possible the production of cost articles without being assigned to a specific product. When clerical support also helps manage the complete office aids of the organization instead of just one product group, their labor can be calculated as an indirect cost.
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