ECONOMICS

Detailed explanation-1: -Indirect costs include costs which are frequently referred to as overhead expenses (for example, rent and utilities) and general and administrative expenses (for example, officers’ salaries, accounting department costs and personnel department costs).

Detailed explanation-2: -Overhead refers to the costs of running a business that are not directly related to producing a good or service.

Detailed explanation-3: -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-4: -Overhead costs, also called “overhead expenses” or “operating expenses", are expenses associated with running a business that can’t be linked to creating or producing a product or service. They are the expenses the business incurs to stay in business, regardless of its success level.