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


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Unknown said...

Yes, this is a common question on PMP Exam about difference between cost types. I found a useful link at which is also quite helpful for PMP exam.

Angela Rich

Recommended Books on PMP

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)