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View Full Version : What is the difference between a direct cost and an indirect cost?


billiejosway
Apr 4, 2010, 08:22 AM
Give an example of each in the context of teaching an accounting class at your school.

Direct costs easily assign to a specific product or service and indirect costs assign to multiple products or services. Examples for teaching and accounting class:

Direct Costs include teaching materials. Indirect costs include original cost of education.
I am not sure about this one. Because a class has many students, would not all the costs be indirect as they would allocate to multiple students?

pready
Apr 5, 2010, 08:05 AM
A direct cost would be the teachers salary or textbooks for the teacher.

An indirect cost would be the salary for the President or Dean at the school, or the rent of the building.

billiejosway
Apr 10, 2010, 02:46 PM
A direct cost would be the teachers salary or textbooks for the teacher.

An indirect cost would be the salary for the President or Dean at the school, or the rent of the building.

Thank you!!