Get Va Vdot Contractor Cost Certification Of Final Indirect Cost Rates 2014-2025

Final rate means an indirect cost rate applicable to a specified past period which is based on the actual costs of the period. A final rate is not subject to adjustment. Note that a final indirect cost rate is established after an organization's actual costs are known, typically a fiscal year.

Indirect costs Utilities. Office supplies. Office technology. Marketing campaigns. Accounting and payroll software. Employee /138-determining-small-business-insurance-needs.html”>Small business insurance.

In general terms, an indirect cost rate is the percentage of an organization's indirect costs to its direct costs and is a standardized method of charging individual programs for their share of indirect costs.

The indirect cost rate is simply an arithmetic calculation of dividing a pool of expenses (numerator) by an allocation base (denominator) such as direct labor cost or total direct costs plus overhead.

The process of assigning costs to one or more cost objects when it is not possible to trace a cost directly. Indirect costs (overheads) always have to be assigned to cost objects using cost allocations. The basis on which costs are assigned to cost objects is called the allocation base or cost driver.

Compute the rate by dividing the total remaining indirect costs by the direct cost base selected for distribution of the indirect costs. The most frequently used base is Modified Total Direct Costs (MTDC).

Indirect rates are the overhead and general and administrative (G&A) costs that a contractor incurs while performing a government contract.