Discussion Question
From your own workplace give an example of a direct cost and an indirect cost.
Use the Flatbush Community Fund at fcfund.org as the workplace.
We are a local non-profit and direct costs would be the actual money given to tutors or for grocery accounts and indirect costs would be the overhead, etc.
(Chapter 6 discusses Expenses (Outflows) – Expenses are the costs that relate to the earning of revenue.
Chapter 7 draws the distinction between Direct and Indirect Costs – direct costs are incurred for the sole benefit of a particular operating unit. Indirect costs are incurred for the overall operation and not for any one unit.)
From your own workplace give an example of a direct cost and an indirect cost. Use the Flatbush Community Fund at fcfund.org as the workplace.