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Indirect cost

Project Management Professional glossary · Project Management Professional

Definition

A cost not directly attributable to a single project, allocated across projects.

Indirect cost in plain English

On the PMP, labels are traps if you only memorize them. Indirect cost is a decision tool: it tells you what to notice, what to ignore, and which next move is legal for the situation on the stem. Hold onto this precise job description: A cost not directly attributable to a single project, allocated across projects. On a stem, name whether Indirect cost is about timing, ownership, measurement, or delivery style — then eliminate the answer that borrows a cousin concept from the wrong phase.

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