Talk:Indirect costs
Add topicLatest comment: 5 years ago by Petwil
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I added a clarification regarding overhead rates. I am not at all familiar with accounting - not by far - so if this is in error or needs to be reworded, please feel free. However, I personally was always confused when people said (for example) that "we have an overhead rate of 32%". Does this mean that of X dollars coming in, X * 0.32 is overhead? No. It means that if I request Y dollars in direct costs, I must tag on an additional Y * 0.32 for overhead. Therefore, given a total request of X dollars, the amount going to overhead is 24.24% ( = 32% / (100% + 32%) ). — Preceding unsigned comment added by Petwil (talk • contribs) 23:12, 5 January 2021 (UTC)