Direct vs. Indirect Costs: What Is the Difference? | Indeed.com
www.indeed.com › direct-vs-indirect-costsNov 09, 2021 · Here are some of the key differences between direct and indirect costs: Cost objects: Direct costs are linked specifically to a cost object, such as an item or service. Indirect costs are not. Activity type: Direct costs typically relate to production. Indirect costs more frequently have to do with administration. Variability: Direct costs tend to be variable, meaning they change when other factors do. For example, the price of fuel fluctuates regularly.