Indirect costs are costs that CANNOT be traced to cost objects in an economically feasible way.

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Indirect costs are costs that are not easily attributable to a specific cost object, such as a product or service, without significant effort or cost. Examples of indirect costs include rent, utilities, insurance, and office supplies. These costs are incurred for the overall operation of the business and are not directly tied to specific products or services. As a result, they cannot be easily allocated to cost objects in an economically feasible way.

Indirect Costs Are Costs That CANNOT Be Traced to Cost