Indirect costs are the expenses that an organization incurs in delivering its day-to-day business operations. Examples include salaries, insurance, rent, rates and taxes, legal charges, advertisement, commission, packing and store supplies expenses, traveling expenses, audit fees, interest on the loan, bank charges, amortization, equipment depreciation, equipment maintenance, utilities, etc. These costs cannot be apportioned to the cost and selling price of a product.

Expenses borne by the company can be of two types- direct expenses and indirect expenses. Direct expenses are the costs directly related to the manufacture of goods, such as the cost of raw materials and direct labor expenses. In contrast, indirect expenses are the indirect costs. A company incurs these costs in delegating its daily business operations. Indirect expenses can be of two types- fixed indirect costs and recurring indirect expenses.

Indirect expenses are of various types and can be divided into three categories: business and administration expenses, Sales and marketing expenses, and economic and other expenses.  Expenses such as salaries, insurance, rent, rates and taxes, and legal charges are business and administration expenses. Expenses such as commission, packing, store supplies, advertisement and marketing, and traveling expenses are termed sales and marketing expenses. Expenses such as interest on loans, audit fees, amortization expenses, and bank charges are termed economic and other expenses.

This article has been a guide to the List of Indirect Expenses. Here we discuss indirect expenses under Business and Administration, Sales and Marketing, Economic and Other Expenses with a detailed explanation. You can learn more from the following articles –

• Meaning of Other Expenses
• Terminologies in Accounting
• What is Indirect Labor?
• Meaning of Indirect Costs