Definition: An indirect cost.

Alright class, settle down and let’s take a look! You’ve stumbled upon a tricky word today – “indirect.” And you’re right to ask about it, especially when the dictionary tells us it relates to ‘an indirect cost.’ Let's break that down, nice and slow. Now, "direct" means something is immediately connected to a specific thing, like a direct payment for supplies. It's clear and obvious – you see exactly what’s being paid for. “Indirect,” on the other hand… it’s a bit more sneaky! It means not immediately or obviously related. Think of it this way: if we’re talking about making cookies, a direct cost would be the flour, the sugar, and the eggs – things you can see and measure . But an indirect cost? That's where it gets interesting. It might be things like... The electricity to run the oven (you don’t directly pay for that just to make cookies) The cleaning supplies to keep the kitchen tidy – (it supports the whole process, not just one cookie!) Or even the salary of someone who maintains the ovens. Essentially, an indirect cost is a expense that isn't directly tied to a specific product or service, but supports the overall operation. It's associated , but not clearly and immediately visible. Does that make more sense? Do you have any questions about how it differs from “direct”? Don’t hesitate to ask - understanding this is key! Now, let's move on to an example...