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What is the difference between a direct and indirect cost?

Direct costs are those costs that can be specifically identified to the item being measured, or the cost object. Indirect costs are costs that are common to more than one cost object. Typically, all costs, other than labor and materials, are considered indirect costs of a product or service.  For more information, see our training module, Direct and Indirect Costs.

What is the difference between a direct and indirect cost?
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