Indirect Cost Series: Part Five – Additional Considerations
Wednesday, 23 September 2015 08:30
This is part five of a five-part series on indirect costs.
As we wrap up our series on indirect costs, it’s important to remember the key takeaways from parts one through four:
Indirect costs are costs that are directly attributed as construction costs but are not easily identifiable to specific contracts.
Indirect costs must be allocated in a systematic, rational, and consistent way by accumulating them into cost pools, then allocating based on cost drivers that have a strong relationship with the incurrence of costs.
Project bids should include estimated allocated costs to maximize contract price, which, in turn, will maximize profit.
This entry was posted on Wednesday, September 23rd, 2015 at 8:30 am and is filed under Uncategorized.
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