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Important Business Terms
Indirect costs are cost not directly transferrable to specific products or sales. Companies face many different indirect costs. A short list of examples of indirect costs is listed below.
Wages for administrative staff
Rent for buildings
Depreciation of machinery and other assets
In the P&L, the indirect costs will get debited as a cost. After having debited both the direct- and indirect costs, the net margin before finances and taxes are visible.
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