indirect costs

Implicit Cost

The opportunity cost of an activity. Implicit costs are what a company or individual could have earned had a different decision been made. For example, suppose an independent consultant has two clients and she spends some time working on the first client's project. The implicit costs are what the consultant would have made had she worked on the second client's project instead. Implicit costs contrast with explicit costs, which are what someone actually spends on an activity. It is also called an indirect cost.

Indirect Cost

A cost to a business that is not directly related to making a product. For example, market research is an indirect cost because, while it may assist in making decisions about production, it does not affect the production of any one unit. Another common indirect cost is the purchase of office supplies. Indirect costs are necessary to running a business. See also: Direct cost, Overhead.

indirect costs

see OVERHEADS.

indirect costs

Costs of construction not directly related to the sticks and bricks. Examples include

• Real estate taxes
• Administrative costs
• Professional fees
• Insurance
• Lease-up expenses

单词	indirect costs
释义	indirect costs indirect costs pl n (Accounting & Book-keeping) another name for overheads Translations EncyclopediaSeeindirect cost indirect costs Implicit Cost The opportunity cost of an activity. Implicit costs are what a company or individual could have earned had a different decision been made. For example, suppose an independent consultant has two clients and she spends some time working on the first client's project. The implicit costs are what the consultant would have made had she worked on the second client's project instead. Implicit costs contrast with explicit costs, which are what someone actually spends on an activity. It is also called an indirect cost. Indirect Cost A cost to a business that is not directly related to making a product. For example, market research is an indirect cost because, while it may assist in making decisions about production, it does not affect the production of any one unit. Another common indirect cost is the purchase of office supplies. Indirect costs are necessary to running a business. See also: Direct cost, Overhead. indirect costs see OVERHEADS. indirect costs Costs of construction not directly related to the sticks and bricks. Examples include • Real estate taxes • Administrative costs • Professional fees • Insurance • Lease-up expenses AcronymsSeeIDCThesaurusSeeoverheads
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