Every item of proposed expense can be classified as either direct cost or an indirect cost

Question

Quizplus · Accepted Answer

Direct costs can be directly traced to a specific product, service, or project (e.g., raw materials, labor directly involved in production), while indirect costs are not directly traceable to a specific item and are incurred for the benefit of multiple projects or services (e.g., utilities, rent, administrative salaries).

Every Item of Proposed Expense Can Be Classified as Either