Indirect costs of a cost object are related to the particular cost object but cannot be traced to it in an economically feasible (cost-effective)way.

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Indirect costs, also known as overhead costs, cannot be easily and accurately traced to a specific cost object like direct costs can be. They are incurred for the benefit of multiple cost objects or the overall operation of the organization. Examples of indirect costs include rent, utilities, and salaries of support staff. While these costs are still related to a particular cost object, allocating them accurately and economically would be difficult or impractical.

Indirect Costs of a Cost Object Are Related to the Particular