Direct and indirect costs are accounting concepts that help you separate expenditures that fluctuate, relative to how much business you transact, and costs that stay mostly the same, whether you sell ...

Cost allocation is significantly more straightforward when allocation involves direct rather than indirect costs. The object of cost allocation is to assign costs to one or more specific cost objects ...

In financial accounting and taxes, attributing expenses to the correct category isn’t just a tip or guideline; it’s a requirement when filing IRS forms, requesting grant funds, or reporting to ...

There are many inputs related to the production of goods and services, not to mention the associated production costs. These expenses can be divided into different categories. Direct costs and ...

Businesses are always looking for ways to cut costs and improve their bottom line. One often-overlooked area for potential savings is indirect spending—the expenses that are not directly related to ...

F&A [Facilities & Administrative] costs, also known as IER [Indirect Expense Recovery] or Indirect Costs, are real costs that are necessary to cover expenses which cannot be charged directly to a ...

COGS is found between revenue and gross profit on income statements. Investors calculate COGS by summing direct costs of sold products or services. Understanding COGS helps assess a company's ...