Saturday, February 2, 2008

Direct and Indirect Costs

What is the difference between Direct and Indirect Costs?

  • Direct Cost
    Costs that are directly attribute to work on the project.
    eg. training cost, travel cost, wages, cost of material used in the project, etc

  • Indirect Cost
    Overhead items or costs incurred for the benefit of more than one project.
    eg. taxes, fringe benefits, etc

1 comment:

Unknown said...

Yes, this is a common question on PMP Exam about difference between cost types. I found a useful link at http://www.pmchamp.com/difference-between-fixed-cost-and-direct-cost/ which is also quite helpful for PMP exam.

Cheers,
Angela Rich

Suggested Study Materials

  • PMP-Preparation Recommended Books
  • PMP Exam Prep, Fifth Edition: Rita's Course in a Book for Passing the PMP Exam
  • A Guide to the Project Management Body of Knowledge, Third Edition (PMBOK Guides)
  • The PMP Exam: How to Pass On Your First Try (Test Prep series)