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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1 comment:

  1. UnknownAugust 4, 2017 at 1:41 AM

    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

    ReplyDelete