One company's indirect spend may be considered direct spend for another.

Question

Quizplus · Accepted Answer

Indirect spend refers to the purchases made by a company that are not directly related to the production or delivery of goods or services. Examples include office supplies, marketing activities, and travel expenses. What may be considered indirect spend for one company may be considered direct spend for another since it depends on the nature of their business operations. For instance, travel expenses can be considered indirect spend for a software development company, but it may be direct spend for a tourism company.

One Company's Indirect Spend May Be Considered Direct Spend for Another