Assistance with the preparation of the direct and indirect cost proposals

A direct and indirect cost rate is simply a device for determining fairly and conveniently within the boundaries of administrative principles, what proportion of direct and indirect cost each program should bear. The direct and indirect costs are incurred for common or joint objectives and cannot be readily identified with a particular grant, contract or other activity of the sponsor, grantor, company. A direct and indirect cost rate is the ratio between the total indirect expenses and some direct cost base. The direct and indirect cost allocation methods used by each sponsor, grantor, company depend on its own structure, program functions, and accounting system.