ECONOMICS

Detailed explanation-1: -Indirect costs (IC), also known as facilities and administrative costs, are defined as those costs that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with a particular sponsored project, an instructional activity, or any other institutional activity.

Detailed explanation-2: -A cost can be both a direct cost and an indirect cost. One of many examples is the cost of a supervisor in a department within a factory.

Detailed explanation-3: -Indirect expenses are also known as overheads.

Detailed explanation-4: -Indirect cost allocation is an accounting function by which estimates are made to distribute indirect costs to programs or functions, in order to approximate their full cost.