Does the cost relate to the performance of a particular job?
Indirect costs do not exist unless there is contract activity. Indirect costs are not directly identified with a specific job. The company develops a plan, the plan is the basis for a budget; the budget identifies direct and indirect costs, and establishes rates; and these rates are consistent between estimating and job cost. Typical indirect costs are the costs compared to overhead. This video discusses examples of indirect costs, and reviews case studies for cost pools.
Runtime: 22 minutes
More Program Information
