How do I allocate indirect costs in my budget?

How do I allocate indirect costs in my budget?

Allocating indirect costs involves distributing overhead expenses across different departments or projects. What specific costs are you looking to allocate?

I'm trying to allocate costs for a research project and an administrative department.

You can use methods like the direct allocation method or the step-down method. Do you have a preference for one of these methods?

I think the step-down method sounds good. Can you explain how it works?

Sure! The step-down method allocates indirect costs sequentially, starting with the department that has the highest costs. Would you like a detailed example?