indirect cost

noun

|Updated on: 2 May 2018

Definition of indirect cost

: a cost that is not identifiable with a specific product, function, or activity

Recent Examples of indirect cost from the Web

Each of the counties hope to get some compensation for the indirect costs of opioid use — like the tobacco settlements years ago that continue to generate funds for Idaho and other states.

— audrey dutton, idahostatesman, "Idaho counties are suing Big Pharma for enabling opioid abuse | Idaho Statesman," 15 Apr. 2018
The profits attributable to the assets being transferred are approximately $140 million, excluding depreciation, amortization and other direct and indirect costs, Shire said.

— noemie bisserbe, WSJ, "Shire to Sell Oncology Unit for $2.4 Billion as Takeda Mulls Takeover," 16 Apr. 2018
Angelenos spent an average of 102 hours last year in traffic jams during peak congestion hours, costing drivers $2,828 each and the city $19.2 billion from direct and indirect costs.

— kirsten korosec, Fortune, "The 10 Most Congested Cities in the World," 5 Feb. 2018
Other indirect costs of traffic, such as food truck operators’ also being stuck in traffic, comes to $45.6 billion per year.

— ed wallace, star-telegram, "Needed: A Roads Scholar," 24 Feb. 2018
Direct costs relate to the value of fuel and time wasted, and indirect costs refer to freight and business fees from company vehicles idling in traffic.

— kirsten korosec, Fortune, "The 10 Most Congested Cities in the World," 5 Feb. 2018
The city also included $100 million in indirect costs for the completion of Greenbrier Parkway and improvements to Alabama Highway 20, which provides the southern border for the plant site.

— paul gattis, AL.com, "Huntsville approves $320 million incentive package for Toyota-Mazda plant," 11 Jan. 2018
This includes both the direct costs for shelter -- like rent and mortgage payments -- as well as indirect costs for things like furnishings and supplies.

— john maxfield, USA TODAY, "A Foolish Take: How Americans spend their money," 30 Sep. 2017
As these children are not financially independent, deporting their parents can lead to child care costs and other indirect costs that will be borne over time.

— mark humphery-jenner, Slate Magazine, "Mass Deportations Aren’t Just Inhumane," 27 Feb. 2017

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'indirect cost.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.