How do I allocate indirect costs in my budget?

How do I allocate indirect costs in my budget?

Allocating indirect costs involves distributing expenses that aren't directly tied to a specific project. Would you like to know the methods?

Yes, what are the common methods for allocation?

Common methods include the direct allocation method, step-down method, and the activity-based costing method. Do you want details on any specific method?

Can you explain the activity-based costing method?

Sure! Activity-based costing assigns costs to activities based on their use of resources, providing a more accurate cost per project. Would you like to see an example?

Yes, that would be helpful!