Formula For Calculating Indirect Cost Rates

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Fundamentals of indirect cost ratesAverage total cost formula Indirect rate cost fixedRequirement 1. compute the 2020 budgeted direct-cost.

First determine the formula used to calculate the indirect cost rate

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Indirect cost

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Overhead predetermined activity rate based cost costing costs accounting compute using each per allocate department steps use managers calculate ratesIndirect rates can help maximize cost recovery .