What are indirect costs?
Indirect costs are expenses not directly linked to producing goods or services.
What are examples of indirect costs?
Examples include utilities, rent, marketing, and administrative salaries.
Why are indirect costs important?
They affect overall profitability and must be managed carefully.
How do indirect costs differ from direct costs?
Indirect costs support operations, while direct costs relate to production.
How are indirect costs allocated?
Businesses allocate them across departments or products using cost allocation methods.