Indirect costs are costs that cannot be directly associated with a specific client or program. They include expenses such as rent, utilities, administrative salaries, and equipment maintenance that are necessary to support the overall functioning of an organization but cannot be attributed to a specific individual or client.

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Indirect Costs Are

Question 5

Multiple Choice

Indirect costs are

A) usually well understood by the staff.
B) those that are incurred in providing services for specific clients.
C) largely a fiction developed by accountants for bookkeeping conveniences.
D) those that cannot be associated with specific individual clients.

Correct Answer: