Direct Costs vs Indirect Costs
Difference between Direct Costs and Indirect Costs in Project Cost Management
Direct Costs
- Costs that can be directly attributed to a specific project
- Included in the project budget
- Examples:
- Labor costs
- Materials costs
- Resource costs
Indirect Costs
- Costs that cannot be directly attributed to a specific project
- May or may not be included in the cost estimate
- Basis of Estimates tell whether indirect costs are included in the project budget
- Examples:
- Management costs
- General administration costs
- Building rental
- Utility costs