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What are two examples of a direct cost and indirect cost


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asked 3 years ago by anonymous edited 3 years ago by humblepm

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Direct costs are those costs exclusively attributed to the project and included in the budget. Examples of direct costs include project labor (wages), and material (for example, the cost of concrete in a construction project, or the cost of a software specifically purchased for the project in case of a software project).

Indirect costs are those costs that the project shares with the rest of the company, indirect costs typically consist of operational overhead (such as rent, electricity, management overhead...).
answered 3 years ago by humblepm (17,390 points)

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